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2008_taxprep
Returning Member

Don't Understand Why Turbotax is Presenting Me with a 5329-T to Complete

I'm running a check of my 2019 taxes and it's presented me with IRS 5329-T and a message, "Waiver of tax should not exceed the minimum required distribution shortfall". There's an amount in the Waiver of tax box that I don't recognize/ can't identify but the amounts in Part IX, lines 52 & 53 are the RMD that was withdrawn during 2019 as my husband's share of an inherited IRA. He took the minimum RMD necessary.

 

His Mom died in 2018 and the inherited IRA was split between him and his sister equally. In 2019, they each withdrew at least the minimum RMD from the inherited IRA.

 

Turbotax Deluxe is installed on my PC.

 

I've searched the internet and these message boards for possible explanations but I can't find anything that makes sense.

 

Thanks in advance.

 

Can anyone help or make suggestions?

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3 Replies
MarilynG1
Expert Alumni

Don't Understand Why Turbotax is Presenting Me with a 5329-T to Complete

Go back and Edit the 1099-R entry for the inherited IRA Distribution.

 

At the question, 'was all of this distribution RMD'  indicate Yes.

 

There could be an issue with the calculated RMD amount, but since you know that RMD was included, you won't need to enter any calculated amount that may be causing the error.

 

 

 

 

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2008_taxprep
Returning Member

Don't Understand Why Turbotax is Presenting Me with a 5329-T to Complete

I did answer "Yes" to the question about "was all of this distribution RMD". 

 

The total RMD amount for the inherited IRA is split equally between my husband and his sister. There's a question asking if he didn't take the full RMD, Turbotax will help request a waiver of the tax. This is followed by three statements and only one can be selected. I have currently selected "XXX received all the RMD for 2019" but I'm wondering if I should select "XXX did not receive all the RMD for 2019" because his sister received some of it too.

 

I hope there's the opportunity to explain why my husband didn't receive all the RMD for the inherited IRA.

MarilynG1
Expert Alumni

Don't Understand Why Turbotax is Presenting Me with a 5329-T to Complete

No, you indicated that your husband received all the RMD for 2019 correctly, as he did receive all the RMD he was supposed to.

 

Since someone's RMD could be received from a combination of retirement accounts, it would be difficult to calculate how much RMD was taken from each of the accounts, to make up the required total.

 

That's why checking 'all the distribution was RMD' should forego that issue. 

 

I would suggest you Delete Form 5329-T from your return.

 

Click this link for more info on Form 5329-T.

 

 

 

 

 

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