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Level 1

Will my TurboTax do a Form 5329 for a late RMD.

I have my IRA at Vanguard.  It is set up to transfer the correct RMD amount out of my IRA each year at the end of December, and it has always worked perfectly until 2017.  I found out this January that the distribution was not made because a mailing Vanguard made to me in September was returned as "undeliverable" and their protocol calls for the account to be frozen in this circumstance.  Since my address has remained the same for the last 20 years it was obviously a Post Office glitch. Since our home was inside the core disaster area of September's category 4 hurricane Irma I have to assume that the mail delivery problem was result of this hurricane. When in January (2018) I found the RMD for 2017 wasn't made I transferred the correct amount out of the IRA but it was now too late for Vanguard to count it as my RMD for 2017.  Vanguard told me that to try to avoid the 50% penalty the IRS charges for a late RMD I should pay the penalty, submit with my tax return a completed Form 5329 and a letter of explanation for the missed RMD.

Will my TurboTax Home & Business Take care of this for me and how long is it likely to take the IRS to return the penalty?


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Level 9

Will my TurboTax do a Form 5329 for a late RMD.

Yes, Turbotax Deluxe, Premier, Self-Employed and Home & Business all support Form 5329. As far as how the IRS will handle the situation, it is not in my power to say. 

1 Reply
Level 9

Will my TurboTax do a Form 5329 for a late RMD.

Yes, Turbotax Deluxe, Premier, Self-Employed and Home & Business all support Form 5329. As far as how the IRS will handle the situation, it is not in my power to say.