Question

Form 5329.How to use it if you missed selling minimum stock in inherited IRA the prior year

Forum|Forum|2 years ago
April 5, 2024
1 reply
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I spoke with my bank, the covid restrictions were lifted last year to make a minimum withdraw. I missed it. I had them pull it for this year. Any idea how to use this form to pay fees?

TurboTax Online

fanfare

Employee

search forum since this question arises frequently.

There will be no penalty if you request waiver of penalty.

when did you inherit the IRA?

Depending on circumstances, you may not have to take a 2023 RMD, in which case the distribution can be applied to 2024 RMD.

@Jonoloiacono

J

JonoloiaconoAuthor

How do i request waiver of penalty and I inherited the IRA back in 2016

T

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.

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