How does TTax calculate tax on excess accumulations in retirement account? I took full distribution of RMDs as calculated by broker and deferred comp. Why a penalty?

Double checked Fidelity and Voya's RMD requirements which I met and don't understand TTax calculation of "excess accumulation"

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Expert Alumni

Feb 23, 2025 7:02:49 AM

There was an issue in TurboTax with the RMD calculation when multiple accounts were involved. A program update was released on 2/21/25, resolving this issue.

Please review your 1099-R entries in TurboTax and complete all of the follow-up interview questions. Once you are done updating your 1099-R entries, click Continue and answer those follow-up questions. Once you have completed these steps, the extra tax should be removed.

If you’re still experiencing an issue, please post here so that we can assist you further.

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How does TTax calculate tax on excess accumulations in retirement account? I took full distribution of RMDs as calculated by broker and deferred comp. Why a penalty?