That is an excess Roth contribution. An excess Roth penalty of 6% repeats every year until the excess has been removed.
If it has been removed and then go to the IRA contribution section - click on Roth - click through the interview until the excess amount comes up (should be the same as line 18) and enter 0 (zero). That should remove the excess and the 5329 form. However, if the excess is still in the Roth, the 2016 penalty is correct. it must be removed before the end of 2017 or the penalty will apply again on the 2017 tax return.
There was an error in a questionnaire 4 years ago and TurboTax has been in a loop of reporting the numbers from that 2012 form and creating a new one each year where I have paid tax. However, it never comes up as a worksheet or questionnaire, it just gets filed and I have paid because I never saw it or noticed it.
The 5329 reports several different things. What penalty is it reporting - what line on the 5329?
It was Part IV, line 18 is the main issue. There was an amount erroneously plugged in there originally and now it flows through to line 24 every year.
That is an excess Roth contribution. An excess Roth penalty of 6% repeats every year until the excess has been removed.
If it has been removed and then go to the IRA contribution section - click on Roth - click through the interview until the excess amount comes up (should be the same as line 18) and enter 0 (zero). That should remove the excess and the 5329 form. However, if the excess is still in the Roth, the 2016 penalty is correct. it must be removed before the end of 2017 or the penalty will apply again on the 2017 tax return.