5329 generated in error

[2inForks1]

My wife and I have 2 Ira’s for which the rmds were paid in full. We also have 3 pensions which distribute fixed amts (which we cannot change) and have the  rmd included in the pmt.

Tt insists on including the pensions as unpaid rmds and generates the 5329 with a whopping penalty.

how do I fix this idiotic error?

[JohnB5677]

Please double check how you posted all of the retirement incomes.

• You should have 5 1099-Rs
• Two IRAs should have the IRA box checked
• The other 3 pensions should not have the IRA box checked.
• I expect the code in box 7 is 7.
• Indicate that the pensions did have a regular distribution.

If entered this way, you should only get 2 RMD requirements.

RMDs are required so that retired people will take out a certain amount of money each year so that it can be taxed.

Retirement plans do not have RMDs.  They distribute on a regular basis, an typically end upon death.

[2inForks1]

Yes, I know about leaving the Ira box empty and there is 7 in the code box. Still get the 5329.  I even checked with my fund manager to make sure that the rmd for the two iras is correct.  How do I fix this so it can be submitted properly?

[RobertB4444]

Please clarify = did the system ask what your RMD was for the three other 1099s and did you enter an amount?

@2inForks1 

[2inForks1]

Yes.  The question made no sense to me for these pensions, so I said yes, and entered the amt paid.  What is the correct response, and why was this question asked?

[DawnC · Accepted solution]

On the 3 pension payments, answer NO to the Did you receive regular periodic payments? question.   For those 3, since they are not IRAs you should leave that blank and say that none of the distribution was an RMD.   You may want to delete them and re-enter them.

How to delete forms in TurboTax Online

How to delete forms in TurboTax Desktop