Solved: I withdrew the RMD from my IRA in a timely manner in 2018. Turbotax indicates I owe the 50% penalty for not withdrawing (Form 5329 Part 9). What's going on?
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I withdrew the RMD from my IRA in a timely manner in 2018. Turbotax indicates I owe the 50% penalty for not withdrawing (Form 5329 Part 9). What's going on?

 
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Level 15

I withdrew the RMD from my IRA in a timely manner in 2018. Turbotax indicates I owe the 50% penalty for not withdrawing (Form 5329 Part 9). What's going on?

TurboTax only generates a 50% excess accumulation penalty if after clicking the Continue button on the Your 1099-R Entries page that you were required to make a RMD of some amount by you received none of it and you are not claiming a waiver of the penalty.  Either revisit that section and modify your answers to indicate that you received all of your RMD in 2018 or delete the Form 5329.  To delete a form in online TurboTax, go to Tax Tools -> Tools -> Delete a form, then click the delete button on the line for Form 5329.

If you are married filing jointly, make sure that all Forms 1099-R are allocated to the correct spouse.

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Level 15

I withdrew the RMD from my IRA in a timely manner in 2018. Turbotax indicates I owe the 50% penalty for not withdrawing (Form 5329 Part 9). What's going on?

TurboTax only generates a 50% excess accumulation penalty if after clicking the Continue button on the Your 1099-R Entries page that you were required to make a RMD of some amount by you received none of it and you are not claiming a waiver of the penalty.  Either revisit that section and modify your answers to indicate that you received all of your RMD in 2018 or delete the Form 5329.  To delete a form in online TurboTax, go to Tax Tools -> Tools -> Delete a form, then click the delete button on the line for Form 5329.

If you are married filing jointly, make sure that all Forms 1099-R are allocated to the correct spouse.

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