topic Part II in Retirement tax questions

I made an error on my form 5329 - form says the tax was to my husband at the top but the IRA was actually mine. We are married filing jointly so does this matter?

wmatwell — Tue, 04 Jun 2019 19:24:22 GMT

Do I need to file a correction? If so, how do I do that since I have already filed?

Yes, it matters and needs to be corrected, but making the...

dmertz — Tue, 04 Jun 2019 19:24:23 GMT

Yes, it matters and needs to be corrected, but making the correction might not change your tax liability. Form 5329 is considered by the IRS to be a separate tax return.

Which part of Form 5329 was prepared?

The only thing that needs to change on form 5329 is to ch...

wmatwell — Tue, 04 Jun 2019 19:24:25 GMT

The only thing that needs to change on form 5329 is to change it from my husband's name/txid to my own info

Which part of Form 5329 was prepared (Part I through Par...

dmertz — Tue, 04 Jun 2019 19:24:26 GMT

Which part of Form 5329 was prepared (Part I through Part IX)?

Part II

wmatwell — Tue, 04 Jun 2019 19:24:28 GMT

Part II

This indicates that you associated a Form 1099-Q with the...

dmertz — Tue, 04 Jun 2019 19:24:29 GMT

This indicates that you associated a Form 1099-Q with the wrong spouse. Although this won't affect joint tax liability, associating the penalty with the wrong individual can mean that the IRS will not recognize the penalty as having been satisfied by the correct individual.

As I mentioned, the IRS treats Form 5329 as a separate tax return. You should probably file a corrected Form 5329 for your husband showing that your husband received $0 in taxable distributions and was not subject to the penalty, and file a Form 5329 for yourself showing you with the taxable income and penalty. Otherwise, because there is generally no statute of limitations on penalties calculated on Form 5329, you risk the IRS claiming at any time in the future that you did not report this income and penalty. Alternatively, you can leave it as is and if the IRS ever in your lifetime claims that you yourself did not report this income and penalty, provide the IRS with explanation then.

Re: I made an error on my form 5329 - form says the tax was to my husband at the top but the IRA was actually mine. We are married filing jointly so does this matter?

Bladi3990 — Tue, 08 Mar 2022 03:44:37 GMT

In part 4 I misunderstood my TSP contribitiona as a roth IRA contribution which they are not the same. I found this out after filing and now I'm curious how I can correct this. Basically, i do not have a Roth IRA and the amount that it shows should be $0. How would I go about this is correcting my mistake?