Inherited IRA / form 5329

Forum|Forum|4 months ago
April 5, 2026
3 replies
103 views

I have an RMD from an inherited IRA which is showing up on form 5329, part III, line 11.

I believe this is incorrect due to the fact that it is an inherited IRA, the excess contributions have nothing to do with the inherited IRA.

I have searched and searched, cannot get the amount to not show up on form 5329.

Any suggestions?

dmertz

Level 15

This is a bug in TurboTax that has been present for many years (at least as far back as 2008 TurboTax), triggered when you have an excess traditional IRA contribution carried in from the previous year (line 9 of Form 5329) and you also received a distribution from an inherited traditional IRA in the current year. Distributions from inherited traditional IRAs are never to be included on line 11 of Form 5329 (because they do not correct excess contributions in your own IRAs).

The instructions for line 11 say, "Enter on line 11 any withdrawals from your traditional IRAs that are included in your income." As I sure you are aware, an inherited IRA is not "your" IRA, it is an IRA of the decedent maintained for your benefit as beneficiary.

I don't think that there is any workaround other than an override on line 11 in the desktop version of TurboTax. That would block you from e-filing, so you would have to mail your tax return.

Perhaps @ReneV4 or @DoninGA can pass this bug report to the moderators.

@MLMcQ , if you obtained a return of an excess 2024 traditional IRA contribution before the due date of your 2024 tax return, including extensions, you have no excess carried into 2025 and you would need to correct that in 2025 TurboTax. If you have no excess carried into 2025, this bug is not triggered.