Question

How do I file a substitute 1099-R?

Forum|Forum|2 years ago
April 9, 2024
1 reply
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I executed my annual 2023 RMD from an inherited ROTH IRA on 12/29/2023. However, the transaction did not settle until 01/02/2024. When I contacted my financial institution, they instructed me to submit a Form 5329 to explain the situation to the IRS and to allow the RMD to post in 2023. Need help figuring out how to do this in TT. Where do I access form 5329? Is this the correct form for this situation? How do I enter a 'substitute' form 1099-R? Thanks!

TurboTax Deluxe Online

M

mglauner

Form 5329 is the form to assess a penalty and request an exception for not taking RMD.

You can report a 'substitute 1099-R' as you suggested, and indicate that the distribution is 'all RMD' and you will not be liable for any penalty or need Form 5329.

Type '1099-R' in the Search area, then 'Jump to 1099'r' or scroll down to Retirement Plans & Social Security under Wages & Income.

Reach out to your financial institution for their Federal ID number, so that you can Efile.

Use Code Q in Box 7 to indicate a 'qualified Roth distribution'. There is no indication that a distribution is RMD on the form 1099-R.

Here's more info on RMD's for Inherited IRA's.

S

sien846581Author

Thank You @mglauner for your helpful reply. As a follow up, I will be submitting a 'substitute 1099-R'. However, as the RMD distribution officially posted on 1/02/2024 (despite being executed on 12/29/2023) my financial institution, Vanguard, assigned the RMD to 2024. Would it make sense that I would also need to submit a form 5329 to explain the situation and to 'request an exception for not taking the RMD' in 2023 ??

And if I do opt to submit a form 5329, where / how do I access in TT ? Appreciate your thoughts on the topic !

DaveF1006

No. Report that you received the RMD in 2023, if you did have a RMD requirement. Report this in the manner MarilynG1 described and request another RMD distribution in 2024 so that you will meet the RMD requirement for 2024.

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