In 2024, my father in law received a lump sum RMD after 14 years (from 4/1/2010), he was not aware of the retirement pension. The plan administrator included interest income in the lump sum amount. As an example, the amount received was $50,000 (including estimated $5,000 interest income). Assuming the RMD per year is $300, what line numbers do these amounts go? Also, requesting additional taxes to be waived. Some explanation would be greatly appreciated. Thank you.
I would assume that the entire amount was an RMD for the 14 years and I would enter it accordingly.
Request a waiver of penalty using a form 5329 and attaching a letter explaining why he was late taking the RMDs. You'll have to mail in your return to do this.
The administrator supplies to you (him) tax documents.
Enter the tax documents into the software.
You don't have to explain anything.
You probably have a 1099-R and 1099-INT.
Due to 2024 TurboTax issues/bugs.
to avoid wrongful penalty, for each 1099-R, tell TurboTax that the distributed amount is the calculated required amount.
P.S.
You can use TurboTax to attach an explanation and still e-FIle if you feel compelled to do so.