I didn't take a RMD in 2019. I took it in 2020. I need Form5329 to waive the 50% penalty. I skipped my 2020 RMD (CARES Act) so my 1099R looks normal. Where is Form5329?

[djohns2520]

I use the online version of TurboTax. I can't find a place to get blank IRS forms anywhere. I can get it from irs.gov but how would I attach it for e-filing?

[AmyC]

Go back through your 1099-R and when it asks about the RMD, lie and say that it was RMD but you did not take all the RMD. This will generate the form and let you get things straightened out. You are the reason we still ask the question about RMD!

[rjs]

Form 5329 has to be filed with your tax return for the year that you skipped the RMD, not the year when you took it. So you should have filed it with your 2019 tax return. You cannot file Form 5329 with your 2020 tax return for a missed 2019 RMD. And you have to use the 2019 version of Form 5329.

The instructions are unclear about whether you can file Form 5329 by itself in this situation, or have to file it with a Form 1040-X amended return for 2019, when you have already filed a 2019 tax return but are not making any other changes to it. But in any case you can no longer e-file it.

There is a defect in the TurboTax interview that makes it impossible to fill out Form 5329 in the question-and-answer interview if you did not receive any 1099-R for 2019. If you don't have a 1099-R to enter, it never asks the question about an RMD. The only way to fill out Form 5329 is in forms mode, which is only available in the CD/Download TurboTax software. To work on a 2019 tax return now, or a 2019 Form 5329, you would have to use the CD/Download TurboTax software anyway.

I assume you want to request a waiver of the penalty for not taking your RMD. In forms mode in the 2019 TurboTax software, click the Open Form icon at the top left, and open Form 5329. (There are two copies of Form 5329. Form 5329-T is for the taxpayer, and 5329-S is for the spouse on a joint return.) You only have to fill out Part IX, which is the last section all the way at the end of the form. Enter the RMD amount that you should have taken in 2019 on line 52 and zero on line 53. Between lines 53 and 54 there is a box where you can enter the amount you are requesting a waiver for, which would be the same amount that you entered on line 52. TurboTax will make the necessary entries on lines 54 and 55. Then click the Explain button to open the Explanation Statement form and enter your explanation. In your explanation statement, briefly state the reason you did not take the RMD, to show that it was "due to reasonable error," and state that you have rectified the error by taking the distribution in 2020.

If you would rather download the form from the IRS web site and fill it out by hand, see the IRS instructions for what to put on lines 54 and 55.

[macuser_22]

You will need to file a 5329 form and request a waiver of the penalty. (The waiver would only be denied if there is no reasonable explanation and the missed RMD was not taken at all.)

If you do have a 2019 1099-R to report then the RMD question in the interview will go to the form 5329 waiver interview if you say that the 2019 RMD was not taken.

If you are using the CD/download version:

Enter the forms mode and click on open form. Type in 5329. Choose 5329-T for the taxpayer (first person listed on your tax return), or 5329-S (for spouse - 2nd person on tax return).

Scroll down to Part IX line 52 and enter the RMD amount that should have been taken. On line 53 enter the amount of the RMD that was actually taken (probably zero if it was missed).

Then in the box right under line 53 "Waver of Tax Smart Worksheet" enter the same amount as line 52 (the RMD amount). Then click the "Explanation" button and enter the reason for missing the RMD and your statement requesting a waver.

You will not pay any penalty now until the IRS determines if it will grant the waver, then they will inform you if you owe the penalty.

OR - if using the Online version and have no 2019 1099-R to file, you will have to prepare the 5329 manually .

Download the 5329 form from the IRS website and fill it out the same as above. Print and mail your return with the 5329 form and explanation attached as described in the 5329 instructions.

The 2019 5329 must be attached to your printed and mailed 2019 tax return and cannot be e-filed.

[NOTE: You can only use this method if you are requesting a waver of the penalty and there is no taxable amount on the 5329 form line 55 that must be transferred to the 1040 form]

From 5329 instructions:
Quote:
"Waiver of tax. The IRS can waive part or all of this tax if you can show that any shortfall in the amount of distributions was due to reasonable error and you are taking reasonable steps to remedy the shortfall. If you believe you qualify for this relief, attach a statement of explanation and file Form 5329 as follows.
1. Complete lines 52 and 53 as instructed.
2. Enter “RC” and the amount of the shortfall you want waived in parentheses on the dotted line next to line 54. Subtract this amount from the total shortfall you figured without regard to the waiver, and enter the result on line 54.
3. Complete line 55 as instructed. You must pay any tax due that is reported on line 55.
The IRS will review the information you provide and decide whether to grant your request for a waiver. "

Download blank 2019 5329 form here:
Form: https://www.irs.gov/pub/irs-prior/f5329--2019.pdf
Instructions:https://www.irs.gov/pub/irs-prior/i5329--2019.pdf