I inherited a 401k upon my brother's death in 2007. I received annual required minimum distributions (RMD) from the account. The sponsor realized that the account should have been liquidated by the end of 2017 and in December 2024 sent me a total distribution and closed the account. They sent a blank Form 5329 and a letter stating their administrative error and said I should attach their letter to my Form 5329 submittal.
How do I report the "excess accumulation" from this account on Form 5329? I have entered the distribution amount on line 52a and 53a and the amount on line 54a is zero. However, the "waiver of tax smart worksheet" has an error message and will not accept the total distribution amount on "A" and the amount on this line is highlighted in red. It did allow me to enter an explanation and request for a waiver of the additional tax.
