BillM223
Expert Alumni

Retirement tax questions

The reason that TurboTax asks you for the value of your IRAs on December 31, 2019 is so that it can calculate a penalty for excess contributions to your traditional IRAs. The penalty is 6% of the smaller of your excess contributions or the value of your IRAs at the end of the year. 

 

Once you entered the value on 12/31/2019, then TurboTax was able to calculate the penalty on form 5329 on line 17. 

 

So you want to search for messages referring to excess contributions (perhaps you already saw them).

 

I don't believe that this had anything to do with your RMD.

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