IRA RMD partial withdrawal, TT wants a 5329-T waiver for 2020.

[CaptCook]

I have been taking an RMD for the past few years. I took some money from my IRA, but NOT my ENTIRE RMD for 2020. Now TT wants me to fill out a 5329-T waver.

Since I wasn't required to take any RMD in 2020, I shouldn't need a 5329-T.

How do I get around this?

Any help will be appreciated.

[ColeenD3 · Accepted solution]

Since you are not required to take the RMD, the question did you take all or part is irrelevant. You can either say that you did not take it or you took it all.

[Missouri68]

I replied that I did not take it, then Turbo Tax checker flags it due to line 2b being checked on form 1099-R.

[MarilynG1]

@Missouri68 If you indicated on your 1099-R entry that 'none of the distribution was RMD' the fact that Box 2a is checked for 'taxable amount not determined' should not flag an error (this is quite common). 

If you then indicated that your distribution was 'disaster related' (due to covid), then later do not check the box saying 'tax the entire distribution this year' then only one-third of your distribution will be taxable on your 2020 return.

If you didn't indicate a covid-related distribution, the entire amount of your distribution is taxable (unless you reported a rollover of all or part of it).

You could Delete/Re-Enter your 1099-R if you think some screens were answered incorrectly.

Click this link for more info on How to Enter 1099-R.