topic Form 5329 being required in TurboTax in Retirement tax questions

Form 5329 being required in TurboTax

Bogreaves — Fri, 19 Mar 2021 02:54:32 GMT

Both my wife and I have IRAs and are past 72 years old. In 2020, I received distributions from an annuity that was a qualified retirement account; this totaled about 30% of that my RMD would have been. My wife made qualified charitable donations from her IRA; this totaled about 50% of what would have been her RMD. But the requirement to take your RMD has been waived for 2020. Why is TurboTax requiring in Smart Check that I complete a Form 5329 to explain what reasonable error I made to not remove my full RMD? Do I need to complete this?

Re: Form 5329 being required in TurboTax

macuser_22 — Fri, 19 Mar 2021 02:59:46 GMT

Delete the 1099-R you entered and re-enter.

Answer the RMD question that "None of this distribution was a RMD" or "RMD not required" depending on the TurboTax version - because it was NOT a RMD, there were no 2020 RMD's.

Re: Form 5329 being required in TurboTax

Bogreaves — Fri, 19 Mar 2021 20:28:03 GMT

Thank you. I deleted the 1099-R, re-entered it, and answered in both places when asked, that I was not required to withdraw RMD. But still, when I get to the end and run the Smart Check, an error is flagged, and I am prompted to complete Form 5329, explaining what reasonable error led me to not take my full minimum required distribution. Do I need to complete that?

Re: Form 5329 being required in TurboTax

macuser_22 — Fri, 19 Mar 2021 20:38:27 GMT

No. It shouldn't be there. Delete the 1099-R.

If you are using the online version delete the 5329 if it is there after deleting the 1099-R.

https://ttlc.intuit.com/community/accessing/help/how-do-i-view-and-delete-forms-in-turbotax-online/01/25593?search-action-id=143331078207&search-result-uid=25593

Be sure to answer the SECOND RMD question that comes near the end of the interview that RMD not required. It is that question that created the 5329.