Received an incorrect RMD Distribution from my Investment Group

[OldGoat68]

TTP on my Computer:I was on my last entry 1099R , when I entered my RMD distribution amount , next screen said DON"T PROCESS RETURN" . So, I called my Investment Group, they agreed, they understated my RDM Amount  by 50%. That day they corrected the RMD amount. They difference was transferred  to my  Bank. They also with held the Federal & State Taxes (2024). I need an updated 1099R Form. So I returned to TT Program and completed questions. Next Screen indicated that there  were working and some updates...keep on working and return back.

Completed entering all data for Federal & State. Selected Review...Passed State RTN & Failed Federal..had 2 errors.

Net result Cant file my tax returns.

Note: When your RMD is understated and you request you Investment Group to re calculate the Distribution. Its very possible IRS will tax the increase by 50%. However there is a Form5329 must be filled out and a "Best Effort Letter" be attached to Form & Federal Return to address the issus. If stated correctly NO additional taxes will be taken.              TTP has not provided a method to incorporate Form 5329 & Best Effort Letter into the program so I can e-file my Federal Tax Rtn . 

I have been waiting at least a week for and answer to correct this problem.

It seems this program is not equipped to solve un-common problems!

I am 84, I have been doing my tax returns since 2002.

I am going to call TurboTax 1-800-624-9066 and explain my problem.

I have wasted a week waiting for a response!!

Probably have to manually do my taxes this year...Pursue a Rebate!!

[ThomasM125]

You can process the form 5329 in the TurboTax desktop software. You can use the Tax Tools option on your left menu bar while you are working on your return to then bring up Tools, which will have an option to Save your return to your computer so you don't need to start your online return over in the desktop version of TurboTax.

In the desktop TurboTax product, use the Forms menu option to bring up Form 5329. Scroll down to Part IX, line 52 and enter your required minimum distribution amount. Enter the amount of any RMD you took in line 53. Use the Waiver of Tax Smart Worksheet below line 53 to enter the amount you want to exclude from tax, and click on the Explain box to enter an explanation of why you missed making the distribution. You won't have to pay the tax for not taking your RMD on your return, pending a determination from the IRS later on.