Missed RMDs for 2021 and 2022

[hslettel]

My husband didn't take RMDs from an account in 2021 and 2022 because he thought it happened automatically.  He has requested the funds be withdrawn and I have prepared a letter for the IRS requesting a waiver of penalties and have the form 5329 filled out for both years.

My question is what do I need to do in TurboTax? Do I need to amend the 2021 return?  Do I record anything in the 2022 return? Or will corrections be made via the 5329 form and any subsequent 1099s in 2023?

[MonikaK1]

You need to file form 5329 for the years that the full RMD was not taken. The IRS can waive part or all of this tax if you can show that any shortfall in the amount of distributions was due to reasonable error and you are taking reasonable steps to remedy the shortfall.

Form 5329 is available in the desktop/download version of TurboTax. You can save your work you did in the online version of TurboTax so you won't have to re-enter it into the desktop version of the program. You can do this by using the Tax Tools menu option on your left menu bar in TurboTax, then Tools, then Save your return to your computer.

Here is a link where you can purchase the desktop version of TurboTax:

TurboTax download products

OR - if using the Online version and have no 2021 1099-R to file, you can prepare the 5329 manually.

Download the 5329 form 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 2021 Form 5329 must be attached to your printed and mailed 2021 tax return and cannot be e-filed.

[NOTE: You can only use this method if you are requesting a waiver of the penalty and there is no taxable amount on the 5329 form line 55 that must be transferred to the 1040 form]
 

[hslettel]

Thanks for your response! I have written a letter to the IRS and filled out the 5329 forms for 2021 and 2022.  My question is whether I need to address this in the 2022 return I am currently working on and if so, how. I also am also not sure whether I need to amend our 2021 return or whether the 5329 form takes care of things.

[MonikaK1 · Accepted solution]

For 2021, the Form 5329 that you are mailing with a copy of the return will address the matter.

For 2022, you can include form 5329 when you e-file.

To fill out form 5329:

1. Open your return and click on Search on the top of your screen.
2. In the Search box, type form 5329 and click on the magnifying glass icon on the right
3. Click on the link Jump to form 5329
4. TurboTax will take you to a section where you can fill out form 5329, which will be included in your tax return.

See this tax tips article for more information on Form 5329 and when it's required.

[joshthehappy]

Stop telling people to search and tell them how to manually get there - you know as well as the rest of us how janky the search is.

[DoninGA]

@joshthehappy For a Form 5329

Click on Federal Taxes (Personal using Home & Business)

Click on Other Tax Situations

Under Additional Tax Payments

On Extra tax on early retirement withdrawals, click on the start or update button