By using TurboTax online software, how can I get form5329?

[siteofbluesea]

By using TurboTax online software, how can l get form 5329?

[RobertB4444]

If you have the 1099-R for the early withdrawal then TurboTax will generate form 5329 automatically for you once you have entered the retirement account information into the system.  

If you are using the desktop software you can use the form view in the upper right corner and look at all your forms.  

If you are using the online software you can search 'form 5329' in the search box on the upper right and click the 'jump to' link that appears and go to the area where you will enter data for that form.

@siteofbluesea 

[siteofbluesea]

I do not get the related RMD 1099R as I missed to withdraw, so I need to report form 5329 to specify the amount I should have withdrawn and the reason why.  The TurboTax online software has no search form option, if you can tell me how to get the form aside from search function?

[RobertB4444]

That function is only available in the TurboTax desktop software.  You'll have to download that in order to enter this transaction.

Here is a really good series of steps for this problem.

@siteofbluesea 

[siteofbluesea]

Thanks! 
I did search all the topics that related to my issue.  And I withdrew the RMD 2024 on Jan. 6 2025 as soon as I found out.  And I realized the desktop can get the 5329.  However I don’t have desktop computer and have been used iPad to report my tax return using TurboTax online software.

with your knowledge can I used desktop version with my iPad ? If so, how? Thank in advance for your advice?

[DawnC]

No, your iPad doesn't have the minimum system requirements to run the TurboTax desktop software.  

Minimum system requirements for TurboTax Desktop software.   See DanaB's instructions, linked here, if you do not have access to the desktop software.   

'If using the TurboTax Online version and have no 2024 Form 1099-R to file, you will have to prepare the 5329 manually.

Download Form 5329 from the IRS website and fill it out the same as above. Print and mail your return with the 5329 form and explanation attached as described in the 5329 instructions.

The 2024 Form 5329 must be attached to your printed and mailed 2024 tax return and cannot be e-filed.

Please be aware that you can only use this method if you are requesting a waiver of the penalty and there is no taxable amount on Form 5329 form line 55 that must be transferred to Schedule 2 line 8.

Please see Relief for Reasonable Cause for additional information.'   From Community Discussion

[siteofbluesea]

Thank DawnC! 

I was hoping I can use TurboTax online to file 5329.  I did asked Turbo Tax  prior to using the software. The person told me I can use online version to get 5329.  However after I entered all data for 2024 tax return and no where can I access 5329.  And I talked to several Turbo experts and got No for answer too.

Now my only option is file manually.  

Turbo tax knew the limitations on online version for many years I hope the community can relate this problem to Turbo Tax responsible staff to implement this option (accessibility to 5329 for online version) for the good of the users.  

Thank you in advance for advocating!

[siteofbluesea]

If I file federal tax return manually in order to include 5329, I like to know if I have to file California state tax return with California version of form 5329 (can different number)?  Anyone knows California state tax rules can give me an answer?

[RobertB4444]

Yes.  For California you will need to attach form 3805P to your return.

Here's that form.

@siteofbluesea 

[siteofbluesea]

Thanks, RobertB

[siteofbluesea]

Hi, RobertB:

Thanks for reply of #3805P for state of California regarding missed RMD for 2024.  Could you tell me which boxes I need to fill and which box for explanation (as opposed to F5329, boxes 52a to 55, with explanation next to box 54a, this section titled as “Additional Tax on Excess Accumulation in Qualified Retirement Plans (Including IRAs”).

I don’t find similar boxes on form 3805P. The part I is Additional Tax on early distributions,  Part II is Additional tax on certain distributions from Education acct and Able acct.  Part III is Additional tax on distributions from Archer and MSS acct.  

please advise!

[RobertB4444]

In the instructions for form 3805P there is a lot of information about what needs to be entered on the form.  California doesn't provide as many exceptions as the federal return does.  But based on what it says what should be included with 3805P is the amounts from 5329.  If you are zeroing out the amounts on 5329 then you will not report them on 3805P and you will provide a copy of the 5329 to California.

However, if any of the exceptions that you are entering onto the 5329 are not covered by California then you will be taxed on the distributions regardless of what the IRS says about your 5329 form.  So check for the explanation that you are entering here and see if that is covered.  If it is then you don't need to file a 3805P with California, just a copy of your federal return with the 5329 included.  If the exception that you are asking the IRS to recognize is not recognized by California then you will need to file 3805P and pay taxes to California even if the IRS says you don't owe.

Here is the instructions for form 3805P.  Take a look at the exceptions and see if you can skip the form altogether.

@siteofbluesea 

[siteofbluesea]

RobertB, 

Thank for the info.  I look through the instructions which all apply to distributions in year 2024, did not mention anything about excess accumulation (e.g. RMD that accumulated and didn’t take out) of qualified planes.  

In 2024 I did not take out excess RMD but took out on Jan 6, 2025.  Therefore on Form 5329 box 52a I entered the amount I took out on Jan. 6, 2025. The rest of the boxes from 52b to 55 which apply to 2024 are all zero.  So I think I don’t need to file 3805P but attached 5329 for the state tax return.  Am I right? I need your expert advice.  Thanks!

[RobertB4444 · Accepted solution]

Based on all of the information that you've entered here that would seem to be the correct approach, yes.

@siteofbluesea 

[siteofbluesea]

Thank RobertB for all of your expertly responses!