With Turbo Tax, how do we file form 5329 for additional tax on Excess Accumulation in IRA? Husband failed to take required minimum distribution for 2023.

[DanaB27]

If you haven't taken the RMD then take it as soon as possible.

You will need to file Form 5329 and request a waiver of the penalty if you have reasonable cause. Please see Relief for Reasonable Cause for additional information.

If you have a Form 1099-R entered then please follow these steps:

1. Click on "Search" on the top right and type “1099-R” 
2. Click on “Jump to 1099-R”
3. Click "Continue" and enter the information from your 1099-R
4. On the "Your 1099-R Entries" screen click "Continue"
5. Continue until "Tell us more about the retirement plan distribution" screen and select "I did not receive all the RMD for 2023" and click "Continue"
6. On the "Required Minimum Distribution" screen enter the RMD amount and actual amount received
7. Enter information on the "Let's see if we can reduce your tax bill" if you want to apply for a waiver.

If using the TurboTax Online version and have no 2023 Form 1099-R to file, you will have to prepare the 5329 manually.

Download Form 5329 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 2023 Form 5329 must be attached to your printed and mailed 2023 tax return and cannot be e-filed.

Please be aware that you can only use this method if you are requesting a waiver of the penalty and there is no taxable amount on Form 5329 form line 55 that must be transferred to Schedule 2 line 8.

If you do not have a Form 1099-R to file this can only be done using the "forms" mode which is only available with the TurboTax Desktop software:

1. Enter the forms mode and click on "Open Form" and type "5329".
2. 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).
3. Then in the box right under line 53 "Waiver of Tax Smart Worksheet" enter the same amount as line 52 (the RMD amount). 
4. Click the "Explanation" button and enter the reason for missing the RMD and your statement requesting a waiver.

[kimbo1961]

Dana how can you have a 1099 if you missed the RMD? I think the only answer to her question is you have to take in the forms mode a 5329 and fill by hand and write the waiver explanation and then print it and US mail it together with your printed 1040.  In  all your info you mentioned this but it was not outstanding and can be hard to understand or  single out..

Bottom line you need to go to forms mode in a desk edition of TT and get the 5329 form and fill with requested info as well as write the waiver explanation and the print it. Then print your tax return and mail both together to the IRS! YOU CAN NOT E FILE YOUR TAX WITH A 5329 FORM INCLUDED!!! This is incredible and kills the most desired feature of the software which is E filing. Don't know what TT has been doing all these years because customers have been asking this same question for over 3 years and by the way this is a common error annually to the tune of close to 28% of filers. Thanks Dana for your great post with all this additional info. You should be at the telephone answering and TT should get rid of all these unknowledgeable people that do not have an answer and worse give you an incorrect one!