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Where is the form 5329 on TurboTax?

Forum|Forum|4 years ago
January 8, 2022
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I realized my IRA wasn’t taken out by 12/31/2021. I had it taken out by 1/6/2022, but I will need to file 5329. I can’t find the form on TurboTax and I want to make sure I can include it with my 1040 filed electronically.

TurboTax Deluxe Online

Best answer by Critter-3

First make sure going forward that the RMD is set for auto distribution for sometime mid December so you never have this happen again.

Next ... the 5329 form will be mailed in separately from the return since you will not get a 1099-R for the distribution until next January ... https://www.irs.gov/forms-pubs/about-form-5329

"Waiver of tax. The IRS can waive part or all of this tax if you can show that any shortfall in the amount of distributions was due to reasonable error and you are taking reasonable steps to remedy the shortfall. If you believe you qualify for this relief, attach a statement of explanation and file Form 5329 as follows.
1. Complete lines 52 and 53 as instructed.
2. Enter “RC” and the amount you want waived in parentheses on the dotted line next to line 54. Subtract this amount from the total shortfall you figured without regard to the waiver, and enter the result on line 54.
3. Complete line 55 as instructed. You must pay any tax due that is reported on line 55.
The IRS will review the information you provide and decide whether to grant your request for a waiver. "

OR ... since the IRS never seems to catch this error (30 years of personal experience + another 40 from a colleague) simply skip the filing of the 5329 ... and make sure you take the 2022 RMD timely and report both on the 2022 return.

Critter-3Answer

First make sure going forward that the RMD is set for auto distribution for sometime mid December so you never have this happen again.

Next ... the 5329 form will be mailed in separately from the return since you will not get a 1099-R for the distribution until next January ... https://www.irs.gov/forms-pubs/about-form-5329

"Waiver of tax. The IRS can waive part or all of this tax if you can show that any shortfall in the amount of distributions was due to reasonable error and you are taking reasonable steps to remedy the shortfall. If you believe you qualify for this relief, attach a statement of explanation and file Form 5329 as follows.
1. Complete lines 52 and 53 as instructed.
2. Enter “RC” and the amount you want waived in parentheses on the dotted line next to line 54. Subtract this amount from the total shortfall you figured without regard to the waiver, and enter the result on line 54.
3. Complete line 55 as instructed. You must pay any tax due that is reported on line 55.
The IRS will review the information you provide and decide whether to grant your request for a waiver. "

OR ... since the IRS never seems to catch this error (30 years of personal experience + another 40 from a colleague) simply skip the filing of the 5329 ... and make sure you take the 2022 RMD timely and report both on the 2022 return.

F

fuzzysueboulderAuthor

I thought I had signed up to automatically get the distribution. I saw on January 5 that I hadn’t gotten it and had it taken out on January 6.

What if I put in the correct amount on my 1040 as if I had received the distribution in 2021, and then also include a 5329 when I file online? Can I fill the 5329 online with TurboTax, put RC on line 54, and submit? Or do I have to print out a 5329 and mail it in?

Critter-3

NO ... you cannot enter a 2022 distribution on a 2021 return ... that will get you an IRS letter for sure ... both the 2021 & 2022 distributions will be reported on the 2022 1099-R and on the 2022 return.

If you insist on filing the form it will have to be paper filed and mailed ... there are only a couple of lines to complete ... see the IRS instructions.

P

pratanas

Where can I find form 5329 on the 2022 Turbo Tax?

J

JamesG1

IRS form 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts has several purposes. For what purpose do you need to use the form?

The form is invoked by the TurboTax software as it is needed. For instance, the screen These Situations May Lower Your Tax Bill within IRA, 401(k), Pension Plan Withdrawals refer to IRS form 5329 Part I.