[Tax year 2020] RMD form 5329 if I only took 1 or 2 IRA RM

[LinS]

I received an automatic IRA RMD in Dec 2020. I've entered it as a RMD via 1099R information. I have a second IRA account that I did not take the RMD. I keep getting an error message regarding the form 5329. Not usre how to proceed.

[DanaB27]

RMD were waived in 2020. Please make sure you select that you were not required to take an RMD when TurboTax asks during the interview in the 1099-R section.

1. Open your return
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R”

[LinS]

Form 5329 still comes up as an error. I have a nondeductible contribution basis. Is this the problem?

[LinS]

I received an automatic IRA RMD in Dec 2020. I've entered it as a RMD via 1099R information. I have a second IRA account that I did not take the RMD. I keep getting an error message regarding the form 5329. Not sure how to proceed.

I have marked "Not required to take a distribution"

I have a nondeductble IRA contribution basis. Is this the reason for the 5329 error and how do I fix it?

[SamS1 · Accepted solution]

That's an interesting questions.  We can try deleting the F5329 out of your return, deleting the 1099Rs, then re-entering the 1099Rs manually to see it it clears.  Make sure and delete ALL 1099Rs listed in your account and re-enter only the 1 you received.

Try reviewing your forms in TurboTax and deleting the F5329. While in your return in TurboTax:

• In the left hand column select "Tax Tools"
• Select "Tools"
• Select "Delete a form"
• Review for Form 5329
• Delete selected form then "Back"

Now lets delete and re-add the 1099Rs.   After you have logged in and are in your return in TurboTax Online:

• Go to Search at the top of the screen.
• Enter Form 1099-R in the search box. 
• You will see a Jump To function that will take you to the 1099-R input screens. 
• Delete the 1099Rs in question by clicking on the trash can next to the form

Please follow these steps to enter your 1099-R.

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R manually
4. Continue until "How much was a RMD?" and select "none"
5. Continue answering the questions.

 RMDs were waived for 2020. You must indicate to TurboTax that none of the distribution was RMD. If you already enter the 1099-R as RMD and changing your answer to the RMD question doesn't work then you have to delete and re-enter the 1099-R form. 
  
You can verify your entry by looking at your Form 1040 line 4 or 5:

1. Click on "Tax Tools" in the left menu
2. Click "Tools"
3. Click "View Tax Summary" in the Tool Center window
4. Click on "Preview my 1040" on the left