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aubutndan
New Member

I am using Turbotax Home and Busness 2021 on a Mac. Turbotax incorrectly added $30K to my income stating that I had Excess Retirement Accumulations (not true).

I made no retirement contributions to ANY account in 2021, so how can I have $30K in excess accumulations?
7 Replies
SweetieJean
Level 15

I am using Turbotax Home and Busness 2021 on a Mac. Turbotax incorrectly added $30K to my income stating that I had Excess Retirement Accumulations (not true).

  • The excess accumulation penalty is levied by the IRS when a retirement account owner or a beneficiary fails to withdraw the minimum amount.
  • The minimum amount required is known as the required minimum distribution (RMD).
  • An excess accumulation penalty of 50% excise tax for that year may be charged by the IRS.

How old were you on 12/31/2021?

Critter-3
Level 15

I am using Turbotax Home and Busness 2021 on a Mac. Turbotax incorrectly added $30K to my income stating that I had Excess Retirement Accumulations (not true).

Are you married ?    Did both of you have contributions to a retirement plan at work (W-2 box 12) ?  If so did you accidentally enter both W-2 forms under the same person ?

aubutndan
New Member

I am using Turbotax Home and Busness 2021 on a Mac. Turbotax incorrectly added $30K to my income stating that I had Excess Retirement Accumulations (not true).

No.  Married and file joint return.  My wife is retired, and I am semi-retired.  Neither of us made ANY contributions to a retirement plan anywhere.  We took a distribution, and Turbotax added a 30K to in "Excess Retirement Accumulation" to my return.  This has to be an error.....

Critter-3
Level 15

I am using Turbotax Home and Busness 2021 on a Mac. Turbotax incorrectly added $30K to my income stating that I had Excess Retirement Accumulations (not true).

Did you enter the distributions  as contributions in the deductions & credits tab by accident ?   Switch to the FORMS mode and look for that "excess" to see where it is being reported (form & line#) and/or to data search where it came from ... this has to be a data entry error somewhere. 

 

See this TurboTax support FAQ on how to contact Support for further assistance with this issue... - https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-contact-turbotax/00/26991

SweetieJean
Level 15

I am using Turbotax Home and Busness 2021 on a Mac. Turbotax incorrectly added $30K to my income stating that I had Excess Retirement Accumulations (not true).

I think the program is telling you that the distribution you took wasn't enough to cover the RMD.  That is, it was $30,000 short.

Critter-3
Level 15

I am using Turbotax Home and Busness 2021 on a Mac. Turbotax incorrectly added $30K to my income stating that I had Excess Retirement Accumulations (not true).

@SweetieJean   Good idea ... check the follow up screens in the 1099-R section  and/or check what box 7 code you entered vs what was on the 1099-R form.  Mixing up a 1 & 7  or a 6 & G can reek havoc. 

SweetieJean
Level 15

I am using Turbotax Home and Busness 2021 on a Mac. Turbotax incorrectly added $30K to my income stating that I had Excess Retirement Accumulations (not true).

and if it was an RMD, be sure you check the box that says that.

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