How do I report additional tax on excess accumulation in qualified retirement plans? (Didn't take RMD from IRA)

[ColeenD3]

You would file Form 5329.

You didn’t receive the minimum required distribution from your qualified retirement plan. This also includes trusts and estates that didn’t receive this amount. See Waiver of tax for reasonable cause , later, for information on waiving the tax on excess accumulations in qualified retirement plan.

Waiver of tax for reasonable cause.

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 of the shortfall 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. If your request is not granted, the IRS will notify you regarding any additional tax you may owe on the shortfall.

[GracehavenPNW]

I've completed Form 5329.  I know the amount of additional tax I need to pay.  How do I enter this information in Turbo Tax?  I need to get to Schedule 2, Line 8.

[DanaB27]

TurboTax should carry the amount from Form 5329 line 55 automatically to line 8 on Schedule 8.

It isn't doing that? Are you using TurboTax Online or TurboTax Desktop?

@GracehavenPNW 

[fanfare]

turbotax makes this difficult, if not impossible, if you did not get a 1099-R document.

[ricg1]

Using Premier.

Excess accumulations are not supported in step-by-step nor by using forms to fill out 5329.

After following the IRS instructions TT will not allow me to enter the amount on line 55 . 

Override does allow an entry, but TT then complains that tax on excess accumulation should not be overridden for electronic filing.  And goes on to say that this prevents cross-checking.  Of course now you can no longer e-file Federal or State taxes.

What strikes me as interesting is that TT was very helpful with the entries leading up to generating a value for line 55, it auto filled line 54 with the RC notation and even offered a special dialog box to enter the reasons for waiver.  But after I checked the box indicating that I qualified for the 10% rate it did not calculate the amount nor allow me to enter it on line 55.

Also interesting is that after overriding I note that TT propagated the value to form 1040 line 8 and went on to recalculate the tax.

Support told me this is not supported and that I would have to mail everything. 

I would say it only appears to be supported until you get to line 55.

[Blizzard1]

Here we are two years later, and this issue is still not resolved in the Turbo Tax software. Very disappointing.

[DanaB27]

If you didn't take your RMD then you can enter this into TurboTax and TurboTax will fill out Form 5329.

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Continue until the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select what is applicable. 
4. TurboTax will walk you through questions about your missed RMD and help you file a waiver if you have a reasonable cause 

@Blizzard1 

[Blizzard1]

Thank you. this worked!