My tax form for IRA contributions Results shows a tax on excess accumulations in retirement account. I took all required RMD's from my account. How do I correct this?

[degowan]

My RMD was calculated by my Investment Broker and is correct.

[ReneV4]

The RMD calculation is based on information that is entered into TurboTax and not on your actual bank or brokerage records, so this can be resolved easily by following these steps:

First, we will delete the original Form 1099-R, as well as Form 5329 that was triggered by the incorrect penalty so that it does not remain in the background:

1. Go to Tax Tools on the left hand panel inside of TurboTax
2. Click on the down arrow and scroll down to Tools
3. Click on Tools and select Delete a form from the menu items that appear in the Tool Center
4. Click on the trash can icon to the right of Form 1099-R and then Form 5329

Now, click back on Income/Wages & Income to return to input the Form 1099-R information again:

1. Go to Income/Wages & Income on the left panel within your TurboTax account
2. Scroll down to Retirement Plans and Social Security and click on the down arrow to the right
3. Click Start to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R)
4. Click the Yes box when you see, "Did you get a 1099-R...?"
5. Click the "Enter a different way" box
6. Click the "Type it in myself" box
7. Click on the box that pertains to your type of 1099-R (typically the first box), Continue
8. Next, you will see, "Enter your 1099-R provider's info", complete that, then Continue
9. Next, you will see "Enter your 1099-R details from _". Enter the information from the original Form 1099-R that you received
10. Ensure the details from your Form 1099-R are correct checking for which Distribution Code was used in Box 7 (or review if imported), then Continue
11. Continue through until you reach, "Let's get more information about your Required Minimum Distribution (RMD)", enter your RMD due by December 31
12. Next, you are asked, "How much of this distribution applied to your December 31 RMD?"
13. If you select "Some", you will need to enter the amount of the distribution that applied to your RMD
14. Note: If this 1099-R entry satisfies your entire RMD, then select, "The entire distribution...", Continue
15. You will reach "Review your 1099-R summary", press Continue (not the pencil) and additional questions will generate for you to answer
16. When you reach "Let's go over any required minimum distributions (RMD)", Continue (not the pencil)

The above steps should resolve the incorrect penalty calculation and no Form 5329 should be triggered.

[Allen14]

The Excess RMD Withdrawal Calculation incorrectly pulls in the PENSION amount from a different 1099-R.  The correct RMD was withdrawn.  It does not let me fix it in Forms View.  Please fix your software ASAP! 

[RogerD1]

@Allen14 When you entered the 1099-R for the pension withdrawal, did you enter an amount for RMD for the pension?  Pensions and annuities (in other words, retirement plans that make regular payments) are considered to satisfy the RMD requirement for those accounts.

Go back in and edit your 1099-R for the pension.  As you go through the screens, you will see one Let's get more information about your Required Minimum Distribution (RMD) - go ahead and enter the amount in box 1 as the RMD amount.  On the next screen, How much of distribution applied to your December 31, 2025 RMD?, you will select The entire distribution applied to the December 31, 2025 RMD.  That will get rid of the 25% penalty on Form 5329.