2025 Deluxe Desktop Form 5329 is deleting any text written in the Part IX Explanation Statement. Is this a known issue?

[KJC8OH]

I am trying to enter text for requesting a waiver of penalty for a missed RMD. The text disappears when hitting Enter button or clicking on the next line below. Wondering if a patch will be part of an update soon.

[DC433 · Accepted solution]

The programs is not designed for any entries like notes or explanations.
You must attach a letter to your tax return explaining the situation. A printed and mailed return will be necessary.

From The IRS instructions:
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 52a and 52b, and 53a and 53b, as instructed.

2. Enter “RC” and the amount of the shortfall you want waived in parentheses on the dotted line next to line(s) 54a and/or 54b, as applicable. Subtract this amount from the total shortfall you figured without regard to the waiver, and enter the result on line(s) 54a and/or 54b, as applicable.

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. If your request is not granted, the IRS will notify you regarding any additional tax you may owe on the shortfall.

[KJC8OH]

Thanks!

[sshiggins]

This response does not appear to be correct.  I have included the text for the Explanation STM for a 5329 Part IX in the past.  I am getting a "Check This Entry" when I run Smart Check and get a dialog box asking for the explanation.  I can cut and paste or type in the response, but it is not saved and just prompts for the text again when Smart Check is run.

[RogerD1]

@sshiggins It sounds like you are trying to enter a statement to apply for a waiver of a penalty for not withdrawing the full amount of your RMD.  If that's true:

1. After entering your 1099-R information, you get to a screen called "let's go over any required minimum distributions (RMD)".  If using the Desktop version of TurboTax, click the pencil icon to the far right of your name.
2. Answer the question about prior year missed distributions.
3. Click yes on the next screen to request a waiver to reduce the penalty
4. Fill in the amount of the RMD you want to the IRS to waive tax on on the next screen.
5. Enter your explanation in the Detailed explanation box, then click Continue.
6. You can check you statement by clicking on Forms in the blue banner at the top right.
7. On the left side menu, click on Explanation Stm under Form 5329-T (or 5329-S if a Spouse IRA)
8. If the statement is not looking quite the way you want, you are able to edit it on this page to get the correct appearance.

[paulinus49]

RogerD1:  I too am unable to "save" the explanation statement for a 5329-S Part IX explanation.  It vanishes every time I click "enter" or print, etc. 

According to my 1099 R, my distribution was $452 less than my RMD for 2025.  However, that is because the charity to whom I had mailed a $1000 check on December 16, 2025 did not cash the check until 01/08/2026.  (would have been $548 more than RMD).  I want to explain that to the IRS on  the 5329 Explanation statement form provided by TurboTax , but the form will not retain the explanation I added.  When I do Smart Check review, it always comes up as an error that can't seem to be fixed because the explanation is blank.

There does not seem to be any way to edit the page to get the correct appearance.

[Mikeydel]

In previous years TT allowed explanation attachments.  Why would it be different now?  I am having the same trouble with line 54a on form 5329.   There are other TT forms which require an explanation and seem to work OK.  I think it is a program bug.

[DawnC]

This is a known issue and we are working to resolve it.  We don't have an estimated fix date for the saving of the explanation statement on Form 5329, but it is being addressed now.  I will update this thread once we have more details.   @paulinus49      @Mikeydel 

[user17717068100]

Yes, it is a known issue. I've spent at least 4 hours with TT's experts trying to make the Explanation worksheet accept the explanation. I got the impression that they want you to believe there is something about your computer's configuration that is causing the problem. That's false. Bottom line. When you tell TT that you had an RMD shortfall, it will generate a form 5329. There will be a related "Form 5329: Additional Tax on Retirement Distributions (Taxpayer) - Smart Worksheet. There is a "Corrected" box on that form. You can check "yes" or "no". IF YOU CHECK YES - YOU CANNOT FILE ELECTRONICALLY. You won't discover this until you push the final "Submit" button. You will be forced to select file by paper. If you check No, the amount of your return will be reduced by 25% of the amount of the RMD shortfall. So, CHECK "NO". You can then file electronically.

My plan is to file electronically. Once my refund has been deposited in my bank account, I'll file a PAPER AMENDED RETURN documenting that I have corrected the RMD shortfall. This should result in an automatic reduction of the penalty from 25% to 10%. I will as for complete waiver of the penalty, explaining why it the shortfall wasn't my fault.

My surmise is that the IRS will not allow electronic filing if you want to reduce the penalty amount. 

[user17717068100]

The TurboTax program includes worksheets for the specific purpose of explaining the shortfall. There is a problem, however, you cannot file electronically if you try to use the form to tell the IRS that you have corrected the shortfall. It is unfortunate that TurboTax does not tell you about this problem before you get to the very end and hit the "Submit" button.

[user17717068100]

The desktop version will not accept any text in the Explanation worksheet despite the fact that the refund calculation changes, appearing to reduce the amount of the penalty once that worksheet is closed. It's only when you get to the final "Submit" the e-filing that you are forced to select an alternative means of filing (i.e., paper). 

[paulinus49]

I was able to get it to work and file ny returns electronically with a written explanation for a waiver.  See my reply at this discussion:  https://ttlc.intuit.com/community/tax-law-changes/discussion/2025-form-5239-s-text-in-part-xi-explan....

I am currently out of town and not at my desktop so unfortunately won't be able to elaborate on what I said in the above discussion.  It was confusing, no doubt.  Utilized quite a few naughty words in the process.

[paulinus49]

I got a notice from TT Community that the HTML was invalid and removed from my last  reply so the title in bold below is what you should be searching for in the Community.You will find where i outlined the steps I took to resolve the problem::

2025 Form 5239-S text in Part XI Explanation statement is deleted or can't be saved

Oh, I was using the Premier desktop version.  I don't know if there is a difference on this issue between Deluxe and Premier.

Good luck.

[user17717068100]

This won't directly answer your question but it should tell you enough for you to understand what's going on: Once you get into the Form 5329, if you click on the YES box under "Corrected?", the program will computer your tax liability so that you only have to pay 10% of the RMD shortfall. There is no way to use Turbo Tax to ask the IRS to waive the entire shortfall penalty EVEN THOUGH the program has boxes and worksheets that appear to support such a request. CAUTION: There is a worksheet visible below where you check YES / Corrected?, which asks for the amount that you corrected. Since I have corrected the entire shortfall, I typed that number in the box. The program immediately computed my refund to the amount due AS IF THE IRS HAD AGREED TO WAIVE THE ENTIRE PENALTY.  I then filled-in my explanation in the EXPLANATION pop-up, closed the form and moved on. HOWEVER, after going all the way to the end, at the point where I could push the "Submit" button, when I pushed the "Submit" button, the program said, "Not so fast, dummy!" (or something like that). It then took me to bac to the Worksheet where I had typed in my Explanation of the corrected amount. The form was blank, as if I had not typed anything in. I re-entered my Explanation. I closed the form and the program me into a DOOM LOOP (fill in the form, continue, hit Submit, go to the form, fill in the form, continue, hit Submit . . . ).  The only alternative at that point is to file a Paper Return.  This means, you can file electronically ONLY if you do not fill in the box that asks how much of the shortfall you corrected. This means that you correct the shortfall but still pay a 10% penalty. My shortfall was not my fault so I wanted a full waiver. I was on the phone with the Turbo Tax help team for hours. All three tried valiantly to get the program to save the Explanation worksheet. None of the three agents that I talked to told me that I could file electronically IF I WAS WILLING TO CORRECT THE SHORTFALL without asking the IRS to waive the entire amount. I ended up checking the NO box under "Corrected?" and was able to file electronically. However, my refund is less by 25% of the amount of my RMD shortfall, despite my having corrected that shortfall. Hope this helps.

[analogue]

I think I have found a workaround for my situation.  

My situtation: 

Married filing jointly and I need to submit form 5329-S (works for 5329-T too) since my spouse has an inherited IRA which she didn't take a RMD from due to the IRA getting transferred from one account to another.  We took a corrective action and took the distribution ASAP in 2026 (the missed deadline was Dec 31, 2025) and are seeking a full and complete waiver of the penalty.

Broken Workflow:

On form 5329-S , Part IX (for example, I'll use $1000 as the RMD)

Line 52b:   Entered $1000

Line 53b: Entered $0

Waiver of Tax Smart Worksheet:

A: Entered $1000 (amount lights up as RED to indicate an error)

Explain: Entered a reasonable explanation (seemed to save just fine).

The issue is that TurboTax insists section A of the waiver is incorrect and it remains RED. 

As a result, Line 54b is not calculated to be $0 as it should be.

The Workaround:

I entered the information in section B of the Waiver of Tax Smart Worksheet instead:

Waiver for Tax Smart Worksheet:

B: Entered $1000 (the amount is BLUE to indicate no error)

Explain: Entered a reasonable explanation.

The result is that line 54b reads correctly:

SEE STMT RC 1000

Calculated Value $0

Verification:

Printed just the form and it contains all the information (including explanation) necessary.

I'm not quite ready to file yet, but I believe since there are no error, I won't have an issue filing electronically.

Hope that helps someone out! This is beyond frustrating after having paid for the product.

TurboTax, get your act together!