Get 2004 Form 5329

If you've missed an RMD, here's what to do to correct the error Take the RMD as soon as you discover you have missed it. ... After taking the RMD, file Form 5329 for each year an RMD was missed. ... Repeat this procedure for each tax year an RMD shortfall occurred, using Form 5329 for that year.

When filing your taxes, it's important to make sure you're reporting all of your income correctly. That includes making note of early distributions from qualified retirement plans or other tax-favored accounts that may be subject to a 10% early withdrawal penalty.

Use Form 5329 to report additional taxes on IRAs, other qualified retirement plans, modified endowment contracts, Coverdell ESAs, QTPs, Archer MSAs, or HSAs.

Form 5329 is the tax form used to calculate possibly IRS penalties from the situations listed above and possibly request a penalty waiver. Form 5329 applies to each individual that might owe a penalty, so for married couples filing jointly, each spouse must complete their own form.

All tax forms must be filed by the due date, typically on or about April 15, including extensions. If you do not have to file an income tax return, Form 5329 can be completed and filed on its own.

If you miss the required minimum distribution (RMD) for your retirement account, you'll essentially have two choices: pay a substantial fine or apply for a waiver. Either way, you'll have a bit of paperwork to fill out, and of course you'll have to fix your mistake and take the required distributions.

The Notice says the IRS will not impose the 50% penalty for missed 2021 or 2022 RMDs within the 10 years if the account owner died in 2020 or 2021 on or after their RMD required beginning date with a designated beneficiary who is not an eligible designated beneficiary (EDB).

Attach a letter of explanation to Form 5329. The letter should include why the RMD was missed, the fact that it has now been taken, and describe the steps taken to ensure that future RMDs will be taken as required.