minimum required distribution from your qualified retirement plan

You will report all of the income on the 2024 tax return since the actual distribution occurred in 2024. Likewise the withholding will be part of your 2024 tax return, however the penalty for no distribution in 2023 must be included on your 2023 return.

 

The penalty is calculated on Form 5329 and will self generate when you answer the questions about your Form 1099-R. If possibly in your case you do not have a Form 1099-R because you did not take the required minimum distribution (RMD) then will add the form to your return.  

 

You must include form 5329 when you e-file and Unfortunately this can only be done using the "Forms" mode which is only available with TurboTax CD/Download if you do not have a 1099-R to file.

 

You can change to TurboTax Basic CD/Download if you choose (it appears you are using this).

• How to switch from TurboTax Online to TurboTax CD/Download?

Once this is completed here are the steps to add Form 5329 to your return.

1. Enter the forms mode and click on open form (left). Type in 5329.
2. Choose 5329-T for the taxpayer (first person listed on your tax return), or 5329-S (for spouse - 2nd person on tax return)
3. Scroll down to Part IX line 52 and enter the RMD amount that should have been taken.
4. On line 53 enter the amount of the RMD that was actually taken (probably zero if it was missed).
5. Then in the box right under line 53 "Waver of Tax Smart Worksheet" enter the same amount as line 52 (the RMD amount). Then click the "Explanation" button and enter the reason for missing the RMD and your statement requesting a waver.

You will not pay any penalty now until the IRS determines if it will grant the waver, then they will inform you if you owe the penalty.

 

Thank you for your help.