On form 5329 how do i fill in missed 2023 rmd which i paid in 2024 in my turbo tax premier?

Forum|Forum|2 years ago
January 29, 2024
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BillM223

Let me understand. Did you miss this RMD in 2023? If so, how did you pay it in 2024?

According to the IRS, you can't pay an RMD in a subsequent year's tax return. Instead, you have to file the 5329 by itself. Please read the following...

From the Instructions for form 5329

If you don’t have to file a 2023 income tax return, complete and file Form 5329 by itself at the time and place you would be required to file Form 1040, 1040-SR, or 1040-NR. If you file Form 5329 by itself, then it can’t be filed electronically. Be sure to include your address on page 1 of the form and your signature and the date on page 2 of the form. Enclose, but don’t attach, a check or money order payable to “United States Treasury” for any taxes due. Write your social security number and “2023 Form 5329” on the check. For information on other payment options, including credit or debit card payments, see the Instructions for Form 1040 or the Instructions for Form 1040-NR, or go to IRS.gov.

Prior tax years. If you are filing Form 5329 for a prior year, you must use the prior year's version of the form. If you don’t have any other changes and haven’t previously filed a federal income tax return for the prior year, file the prior year's version of Form 5329 by itself (discussed earlier).

Note the 5329 (for various years) can be found at IRS.GOV.

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grimeyspawAuthor

My last message was a little confusing.....

To clear it up bit...

I missed my 2023 RMD as I thought it was on 'automatic' with Vanguard starting in 2023.

As I started my 2023 taxes in my TurboTax Premier on 1/29 I saw the 2023 RMD was NOT paid by Vanguard in 2023.

I called Vanguard on 1/29 and they withdrew my 2023 RMD and also my 2024 RMD with a 10% federal tax on both on 1/29. I have confirmation of the payments from Vanguard of payment and taxes paid.

I downloaded Form 5329 form 2023 but don't understand the amounts to fill in lines 52-55, and are they the only required lines to deal with?

Do I attach a waiver request with excuse for late RMD payment.

I see TurboTax Form 5329 has a Waiver of Tax Smart Worksheet where I can l add a 'waiver explanation request'.

Do I now have to mail-in my federal taxes with the 5329?

or can it be e-filed.

I also have the AZ state tax to complete. Would it be 'dealt' with by Turbo-Tax?

Does my Premier version 'deal' with this for an on-line e-file?

I also wonder how my AZ state tax process is affected by my mistake with the late RMD.

I am confused if my returns need to be mailed in because of Form 5329.

Thank you much for your patience.

DaveF1006

It depends. First of all, do anything on the forms themselves. Report this in the interview section of your program so you can insure accuracy in your return so that yo are able to efile. Too many mistakes are made when you report everything on the forms and you do not need this aggravation. You will report the 2023 RMD distribution as you received it in 2023.

Go to federal>wages and income>retirement plans and social security>IRA/401K/pension plans....
Record your 1099R information. If you did not receive a 1099R, then you will need to create a mock 1099R complete with the payer's address, EIN, amount of the distribution, type of distribution etc. You may wish to consult with Vanguard to find out specific information such as EIN, address, and distribution codes.
Once you report your 1099R information, there will be a series of questions, one asking you about your RMD distribution. here is where you would report that the entire income amount is a RMD distribution.
if properly filed and reported, this will flow to your Arizona return.
Keep in mind, this 1099R is used because you need to report the income from the RMD so you won't be penalized this year because the penalty could be substantial so creating this 1099R is critical.

In 2024, you should receive two 1099R's. One for the 2023 RMD and one for 2024. The one for 2023 should be coded in a way that will exclude it from taxation since you already reported this on your 2023 return.

For this year, if you report this exactly the way I have outlined, you will be able to efile your return.

@grimeyspaw

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