topic Missed 2022 RMD in Get your taxes done using TurboTax

Missed 2022 RMD

scottirv — Fri, 17 Feb 2023 19:23:18 GMT

I missed my 2022 RMD. I took it on Feb. 17, 2023. My broker says that the 2022 RMD distribution will appear on my 1099-R for 2023 along with my 2023 distribution. I had no other activity which required a 1099-R for 2022 so I did not receive one. I am not eligible for a 5329 waiver. So do I need to report to the IRS this year that I have taken a late distribution for 2022 and incurred a penalty?

Lastly, if needed, how the heck do I get TT to generate a Form 5329? (I have the Deluxe desktop version).

Re: Missed 2022 RMD

fanfare — Fri, 17 Feb 2023 19:55:41 GMT

how the heck do I get TT to generate a Form 5329? "

this is the hard part.

Even if you are not eligible for the waiver, IRS will grant the waiver if you ask for it and state that you took timely action to correct the problem.

@scottirv

Re: Missed 2022 RMD

scottirv — Fri, 17 Feb 2023 21:56:01 GMT

Thanks for your help--saves me a few bucks, but only if I can access and file the form.

Re: Missed 2022 RMD

fanfare — Mon, 20 Feb 2023 02:03:57 GMT

This is a deficiency in TurboTax. It may have been fixed in the 2022 version, I don't know.

my general solution to such problems is this.

E-file your return, don't file on paper.

After it is ACCEPTED and approved,
get Form 1040-X from IRS website and mail it in with your 5329, which you can also get in fillable PDF.
Note: when you are not changing any dollar amounts on your amended tax return, you can leave all the lines 1-23 EMPTY.

Note: Do not include your old 1040 nor your revised 1040 because the Form 1040-X reflects any changes there and becomes your new tax return. in this case, nothing is changing anyway.

Your required explanation for waiver request can be entered on 1040-X Part III.

Thus, you only have to mail two pieces of paper to the IRS to amend.

@scottirv

Re: Missed 2022 RMD

scottirv — Mon, 20 Feb 2023 14:26:00 GMT

Sorry, I am just getting back to this today. I am a little uncomfortable with the whole 1099-X filing, but agree that it is probably the best approach given that TurboTax can't seem to be bothered with it. On the Form 5329 after adding the RC notation on line 54, should line 55 show the penalty amount or zero. I am assuming zero since I am not adding any new amounts on the 1099-X.

Re: Missed 2022 RMD

fanfare — Wed, 22 Feb 2023 18:32:07 GMT

line 54 has to be zero otherwise you would have to send money.

my tax software would put the shortfall amount to the left of the box with code RC

that shows you are requesting the waiver.

@scottirv