Where did this tax on excess accumulations come from?

user17736923198 — Tue, 24 Mar 2026 22:39:51 GMT

Ive made an error and want to review all from the beginning.

Re: Where did this tax on excess accumulations come from?

guywong — Tue, 24 Mar 2026 22:45:10 GMT

Did you by any chance fail to withdraw your Required Minimum Distribution from your IRA or other retirement plan?

Even if that's the case, I would rectify that ASAP and then request for a waiver of all the penalties.

Re: Where did this tax on excess accumulations come from?

TomK2023 — Wed, 25 Mar 2026 01:42:23 GMT

"Tax on Excess Accumulations" specifically refers to a penalty for not taking your Required Minimum Distribution (RMD) from a retirement account (like a Traditional IRA or 401(k)).

The IRS requires you to start taking money out of these accounts once you reach age 73 (formerly 72); if you don't take the full amount, they will charge an "excise tax" on the shortfall (25% or 10% with a waiver).

The program thinks you missed an RMD because:

When you entered your 1099-R, you may have answered "No" (or left a blank) when asked "Was this a Required Minimum Distribution?"
If you have an inherited IRA, the RMD rules apply regardless of your age (a missed distribution).
If you have multiple accounts and entered the total RMD amount into a single 1099-R, the program may think the other accounts missed their distributions. You must enter the RMD info for each 1099-R individually.

It is often faster to delete the forms than to try to find the one wrong "Yes/No" click.

Open or continue your return.
Under Federal tab, Click on Wages & Income.
Scroll to Retirement Plans and Social Security and Click on Show More.
Click Start/Revisit next to IRA, 401(k), 403(b) (Form 1099-R).
On the summary screen, click the trash can icon next to every 1099-R listed.

Add your 1099-Rs back one by one. When you see:

"Was this a withdrawal of a Required Minimum Distribution?", Answer "YES" if you are over 73, or this is an Inherited IRA.
"How much of this distribution was an RMD?", Click on "The entire amount was an RMD" (unless you took out way more than required).
"Did you miss a required distribution?", Make sure you select "No, I took the full RMD" or "None of these plans failed to withdraw the RMD."

If the tax is still there (Form 5329 - Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts is being generated):

Click on Tax Tools, then Click on Tools, and then Click on Delete a Form.
Look for Form 5329 and delete it.

If you actually missed an RMD, the program will ask if you want to request a waiver in the 1099-R section (answer Yes). The IRS is often lenient if you show it was a "reasonable error" and you take the distribution immediately after realizing the mistake.

topic Where did this tax on excess accumulations come from? in Get your taxes done using TurboTax

Where did this tax on excess accumulations come from?

Re: Where did this tax on excess accumulations come from?

Re: Where did this tax on excess accumulations come from?