Which year to file 5329 in lieu of the fact that we received 2021's distribution in 2022?

[ttcustomers]

We did not receive a 1099R for 2021 though we should have.  When we contacted the custodian on 3/30/22, the custodian told us the amount we should have received in 2021, and sent us a check yesterday, but the custodian would not issue the 1099R for 2021, and indicated that they would do it later along with 2022's.  

In summary, we received 2021's distributions in April 2022, but we do not have the 1099 R. Two questions:

Q1. Should we file 5329 in 2021's tax or in 2022's tax?

Q2. Should we put the distribution amount in the TurboTax 1099 R section for 2021's tax though we do not have 1099 R?

[ErnieS0]

It depends on when you received the income. If you received a Form 1099-R distribution in 2020 then amend your 2020 return to report the distribution and pay any 5329 penalty.

How do I amend my 2020 return?

You can prepare a substate Form 1099-R if your custodian did not send you a form in 2020.

1. Type 1099-r in Search in the top right
2. Select Jump to 1099-r
3. Keep going after you enter your information until you see the screen Do any of these situations apply to you?
4. Select None of these apply and fill out the info

[ttcustomers]

Thank you, Ernie!
Would you please confirm that since we received the distribution in 2022 (though it should have been 2021), we should NOT report it in 2021's tax return? Or should we still report it in 2021 using the info you provided to prepare a substitute 1099 R?

[ThomasM125]

I think you mean that you missed a required minimum distribution from your pension plan. If so, you can apply to have the associated penalty removed.

You won't report the distribution on your 2021 tax return since it was taken in 2022. Since the distribution is late, you can file form 5329 with your 2021 tax return to request a waiver of the penalty for not taking a distribution.

You can only do this in the desktop version of TurboTax if you don't have a 2021 form 1099-R to enter. You use the Forms mode to bring up form 5329 and scroll down to Part IX, line 52 and enter the RMD amount that should have been taken. Enter the actual amount taken or $0 if no RMD was taken on line 53. 

In the box under line 53, enter the RMD amount.  Click on the explanation button and enter the reason for missing the RMD. The IRS will let you know if you owe a penalty, which would be 50% of the required RMD amount that was missed.