I missed my one of 2022 MRD distribution because of insufficient fund in accordance with my brokerage firm. It supposed to be done by brokerage firm on 15 Dec 2022 but didn't do it because of insufficient fund. I took 2022 distribution in April 2022. I filed for an extension for my tax return. While working on Turbo Tax I had to provide a waiver explanation on line 54 of form 5329. Do I have to submit a separate completed line 52 (MRD amount) and line 53 (0 amount ) form 5329 or as It is already covered in my Turbo Tax return which I am going to submit before Oct 2023.
"Do I have to submit a separate completed line 52 (MRD amount) and line 53 (0 amount ) form 5329?"
Only one Form 5329 regarding this late-taken MRD is to be included in your tax return. The Form 5329 prepared by TurboTax and included in your tax return will already have lines 52 and 53 showing the amounts you indicated. You should always print and review your tax return before filing and you should see this Form 5329 present.
The distribution itself is 2023 income reportable on your 2023 tax return along with your 2023 MRD. Unless you take these distributions from different accounts, expect to receive only one Form 1099-R that combines these two distributions.
It's been noted that TurboTax Online make it difficult to attach Form 5329 in this scenario.
Maybe they fixed that.
If you e-File without Form 5329 because TurboTax Online won't produce it,
and wush to request a full waiver of the penalty, you can attach Form 5329 to 1040-X and put your explanation in Part III.
The proper way to file Form 5329 is attached to Form 1040-X.
Form 5329 can be mailed by itself only when you are otherwise not required to file a tax return.
After you e-File,
get Form 1040-X from IRS website and mail it in with your 5329 which you can also get in fillable PDF.
Note: since you are not changing any dollar amounts on your amended tax return, you can leave all the lines 1-23 EMPTY.
Part III explanation: will explain to the IRS why you missed the RMD, what action you took that they should waive your penalty. Include dates and amounts to show timely action on your part. This is required if you request a waiver.
When mailing 1040-X, do not include your old 1040 nor your revised 1040 because the Form 1040-X reflects any changes there and becomes your new tax return.
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