Turbotax is telling me that I did not take out sufficient distribution from my IRA but my RMD was 0. Anyone experience this issue?

[dmuliyil]

It is calculating a tax on excess accumulation in my retirement account and assessing a $4381 tax. But I did not have an RMD for last year since I reached 73 this year

[ReneV4]

Since you did not turn 73 until this year, you can skip the RMD section and avoid triggering the penalty tax you are seeing.

First, you will need to delete both the Form 1099-R that you have entered and Form 5329 that was generated to address the RMD penalty, since it does not apply.

To delete your 1099-R:

1. On the left panel inside of TurboTax, Go to Tax Tools and click on the down arrow to open more options
2. You may have to scroll down a little to view the Tools option below
3. Click on Tools, then Delete a form (Usually the third option down)
4. Scroll down to delete the Form 1099-R

Next, to delete Form 5329:

1. Go to Tax Tools on the left panel
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 5329

To re-enter your Form 1099-R and skip the RMD section, do the following:

1. Go to Income, then Retirement Plans and Social Security 
2. Click on Start or Review to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R)
3. Add your Form 1099-R information
4. Select Continue until you reach "Let's go over any required minimum distributions (RMD)"
5. Click on the pencil to the right of your name
6. On the "Let's check if you missed any required distributions", it will ask "Did you miss taking the RMD...?" select "No" and Continue

[dmuliyil]

Thank you ReneV4 for your great response and direction. Really appreciate the time and trouble you took.

Fortunately, I had the chance to go over the issue I was having with a Turbo Tax service associate, and is just going over the entries you alluded to I realized the mistake I was making; I entered the combined RMD for my wife's two IRA accounts in each of her 1099-R entries, and the system (naturally) added them. It was not for my account, it was for my wife's. Once I corrected the error by entering the RMDs associated with each account balance - it all corrected appropriately. 

Regarding the RMDs, our financial advisor always gives us a single number per person, regardless of the number of accounts, so I didn't give it much thought until I explored further. One does not need to take out the stated RMD from each account, so long as the totals of all the accounts is met.

Lastly, My Bad for not following up with this explanation before - and sparing you the work. I should have done that, but I was too busy celebrating. Hopefully this will not be lost and someone else can benefit.