On form 5329, on line 52 do I put 800 for the RMD I was suppose to take and 0 for line 53. Then 800 on line 54 with 400on line 55?

[ballen]

I took the 2016 RMD and 2017 RMD in 2018 along with the 2018 RMD.  I know I need an explanation statement but unsure of line 55.

[dmertz · Accepted solution]

No, you do not put $800 on line 54 and $400 on line 55.  Both of these lines should be zero on the 2016 and 2017 Forms 5329 if you are requesting waiver of the entire penalty.

It's not clear what amount your 2016 RMD was and what amount your 2017 RMD was, since requests for waivers of the penalty for each of these is made on the Form 5329 for the corresponding year.  For example, if the missed RMD for 2016 was $390 and the missed RMD for 2017 was $410, your 2016 Form 5329 will be as shown in the attached figure.  The 2017 Form 5329 will be similar with $410 instead of $390 in the two places.

With each of the Forms 5329 (2016 and 2017) requesting waiver of the penalty you'll need to provide an explanation statement.

[macuser_22]

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 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. "

You put zero on line 55 since you are requesting a waiver of all the penalty, and don't forget the "RC" on line 54 as dmertz's screenshot shows.

[macuser_22]

You can download the 2016 5329 here:
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-prior/f5329--2016.pdf">https://www.irs.gov/pub/irs-prior/f5329--2016.pdf...>
And the 2017 here:
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-prior/i5329--2017.pdf">https://www.irs.gov/pub/irs-prior/i5329--2017.pdf...>

[Anonymous]

you need to file 5329 for 2016 and 2017  for the missed RMD's.   hope you can provide a good reason for missing them .two years in a row since the penalty is 50% which the IRS usually waives if you provide reasonable cause. .   since the issue was corrected in 2018 and you took your 2018 timely no 5329 is required. the 1099-R should reflect the total distribution taken in 2018