Form 5329

Forum|Forum|3 years ago
April 11, 2023
2 replies
4 views

Suddenly TTax is including Ford 5329 in my parent's taxes. It never did this before. The reason is exception number 12 which says they took an IRA distribution before they were 591/2. My parents are in their 80's so I know this is wrong. The amount is from a 1099-R which is a dividend distribution from their IRA. I have checked my entries and they are all correct. Has anyone encountered this before?

thank you,

Gus

hbl3973

Alumni - Champ

Hmmm. Check for any typos in the dates of birth for your parents.

ThomasM125

Level 15

Codes 1 and 2 in box 7 on your Form 1099-R would indicate that the distribution was for an individual who was under the age of 59 1/2, so that could be where the error is comming from.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

GusAuthor

Level 2

Thanks everyone for your suggestions. It appears that I encountered a bug in TTax. I had forgotten a life insurance policy that my parent's collected last year. Although not taxed, TTax does ask about life insurance when you apply for the homestead credit in Michigan. When I checked the life insurance box that is when this form 5329 showed up. I tried deleting the 1099-R that was associated with the amount. Form 5329 remained. I tried not applying for the homestead credit. Form 5329 remained. I tried unchecking the life insurance policy in the list of questions it asks - I could not uncheck it. I could check and uncheck every other option, but not this one. I took drastic measures. I deleted the TTax file and started all over again. I did not apply for the homestead credit at all, since I knew my parents no longer qualified. Then everything worked fine.

I used to be able to get hold of someone at TTax - usually they are interested in such things. But I only got an automated response. Anyway, the taxes are done and filed. Thanks for your help and suggestions.

hbl3973

Alumni - Champ

Gus,

Whew, not ideal, huh? I've reported this to the powers-that-be for assessment. I think you should consider using a desktop version next year. In that way you can examine, edit and/or delete forms directly if you want.