RMD missed for 3 years, realized last year and pull full amount

[Anonymous]

My dad missed his RMD for 3 years (2017, 2018, 2019)  because he was working and thought this didn't apply. Took out a partial sum to cover the RMDs in the missed years plus 2020 after realizing and has received a 1099R for the year 2020. 

Does filing the waiver in form 5329 for 2020 cover the last 3 years, or would I need to file form 5329 for every year missed? If so, would the amount waived be the total RMD for the years missed (2017-2019). \

Lastly, what's the best way to file a 5329 using TurboTax?

Thank you so much!

[AmyC]

Yes, filing one form 5329 is sufficient since it was all done at once.  You want to ask for all of it to be waived.  The IRS usually allows the waiver with an explanation but you have 3 years so you may see some response. Years 2017, 2018, 2019 did require RMD if he was over 70.5.  However, 2020 did not have RMD.

This is where things get weird for you. The program will ask if you took the 2020 RMD, say no. This will trigger the 5329 to pop-up so you can answer 5329 correctly.

The IRS RMD Rules state: 

Consequence for failing to take required minimum distributions

If you do not take any distributions, or if the distributions are not large enough, you may have to pay a 50% excise tax on the amount not distributed as required.

• To report the excise tax, you may have to file Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts.
• See the Form 5329 instructions PDF for additional information about this tax.

If you need more help, reply here and see where @macuser_22 gave a great answer last year full of help at Can you add form 5329?

[macuser_22 · Accepted solution]

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@Anonymous wrote:

Does filing the waiver in form 5329 for 2020 cover the last 3 years, or would I need to file form 5329 for every year missed? If so, would the amount waived be the total RMD for the years missed (2017-2019).

Lastly, what's the best way to file a 5329 using TurboTax?

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It does not.   You do not file a *2020* 5329 at all.  You must file a separate  5329 for each missed RMD for the year that the RMD was missed.   A 2017, 2018 and 2919 5329.    They CANNOT be combined per IRS rules. (Instructions page 1" Prior tax years. If you are filing Form 5329 for a prior year, you must use the prior year's version of the form."

These 5329's can  be downloaded form the IRS and filled out by hand, signed and mailed to the IRS with the explanation statement attached.   Assuming the missed RMD's have all been taken in 2020, include that information in the statement.

https://www.irs.gov/pub/irs-prior/f5329--2017.pdf

https://www.irs.gov/pub/irs-prior/f5329--2018.pdf

https://www.irs.gov/pub/irs-prior/i5329--2019.pdf

See the instructions page 8 for what to include.

https://www.irs.gov/pub/irs-prior/i5329--2019.pdf

Mail to the same IRS address that a 1040 form would be sent.

[Anonymous]

Thanks @macuser_22! This helped a lot and I read another one of your replies. For the 3 forms of 5329 that I will be sending in (2017, 2018, 2019) can I mail these together and use one explanation statement. Or it would be best to mail each form individually with one explanation statement attached. 

[macuser_22]

Mail together.