ReneV4
Employee Tax Expert

Retirement tax questions

It sounds like your entire distribution was your RMD, so this can easily get corrected by following these steps:

 

First, you should delete the erroneous Form 5329 that was generated:

 

  1. Go to Tax Tools on the right hand panel inside of TurboTax
  2. Click on the down arrow and scroll down to Tools
  3. Click on Tools and select Delete a form from the menu items that appear in the Tool Center
  4. Click on the trash can icon to the right of Form 5329

 

Next, to designate the entire distribution as the RMD amount from Form 1099-R, do the following:

 

  1. Return to your 1099-R entries by clicking Review to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R) in the Federal Wages & Income
  2. Click on the pencil to the right of the 1099-R
  3. Click Continue through the entries you've made
  4. "Let's get more information about your Required Minimum Distribution (RMD), enter the amount of your distribution as your RMD that was due by December 31, 2025Continue
  5. On the next screen, "How much of this distribution applied to your December 31, 2025 RMD?", select "The entire distribution applied...", Continue
  6. When you reach, "Review your 1099-R summaryContinue (not the pencil)
  7. When you reach, "Let's go over any required minimum distributions (RMD), Continue (not the pencil)*

 

*Note: If deleting only Form 5329 and following the above steps does not resolve the error message, it will be necessary for you to delete Form 5329 again, as well as the Form 1099-R entry and then re-enter the Form 1099-R, so that the RMD is properly calculated.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"