Form 5329

[user17520232812]

I filed for an extension for my 2024 return.  I was preparing to finalize the return only t o be  surprised that  my return now includes Form 5329 - showing that I did not take the full RMD for 2024.  I did not prepare this form because my RMD is actually distributed by Fidelity and Vanguard .  They inform me as to   what my RMD is for each year and make the distributions accordingly.  Form 5329 now incorrectly shows as undistributed RMD of $25,039 and a penalty of $6,260.

I called the IRS for clarification only to be told that since the 2024 return has not been filed, they could not respond.  At this point I plan to file the return with the erroneous Form 5329 then follow-up with an amended return.  Do you have a better solution?

[rjs]

The better solution is to figure out what you entered incorrectly in TurboTax and correct it before filing your tax return. The only way TurboTax knows whether you took your full RMD is by asking you. Go back over your entries for the two 1099-R forms and make sure you entered everything accurately. Be sure to continue through all the questions until you get back to the main income screen. The questions about RMDs in TurboTax are somewhat confusing this year. Read each question carefully and make sure you answer accurately. When all of your entries are correct. the Form 5329 should disappear from your tax return.

[VolvoGirl]

No do not file it wrong.   Are you using the Desktop program or the Online version?   Did you answer the questions if you took the RMD?  Are they from IRA or 401K?  there was problems with reporting the RMD.   What code is in box 7 in the 1099R?   I’ll page @dmertz 

The 1099R RMD questions were fixed on Feb 20, 2025!  If you are using the Desktop program be sure to update your program.  Go back though and revisit your 1099R entries.

You need to go back through the 1099R entries and revisit all the answers.  The questions have changed so your prior answers won’t be right especially if you answered them with a work around to make them come out right.  I would delete that 1099R and enter it again manually.  That usually fixes it and resets the questions.

[fanfare]

When no QCD is involved,
Due to TurboTax issues.
to avoid wrongful penalty, for each 1099-R, tell TurboTax that the distributed amount is the calculated required amount.
OR
Due to TurboTax issues.
to avoid wrongful penalty, for each 1099-R, tell TurboTax that the calculated required amount is -0-.

@user17520232812 

[dmertz]

If you completed the RMD, the problem is that you told TurboTax the wrong amount that was required to be taken from each account and you need to go back and correct that for each of the Forms 1099-R.

[Mike9241]

to further clarify for each 1099R the RMD you specify cannot exceed the amount in box 1.