It is showing $498 for additional tax on IRAs and tax favored accounts. what is for that? I am not owning any taxes then why it is showing penalty?

Forum|Forum|11 months ago
April 10, 2025
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TurboTax Deluxe Online

DaveF1006

It sounds like you took early withdrawals on these account or had a RMD requirement this year. You may wish to elaborate on your question like did you make premature withdrawals or did you turn 73 in 2024 and didn't take an RMD.

Premature withdrawals occur if you take distributions before 59 1/2 or if you withdrew from a Roth and within five years after opening the account.

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saurabh-msccaitAuthor

Didn't withdraw anything from Roth, I'm near to 50. Even Roth just started last year.

AnnetteB6

Taxes can be imposed on Form 5329 for early distributions or for excess contributions to Traditional or Roth IRAs.

If you are reporting contributions to a Traditional or Roth IRA as part of your tax return, you should revisit that section and pay close attention to the messages on the screen to be sure that you are not making an excess or disallowed contribution which is causing the additional tax.

This situation could also apply to an excess contribution to a Health Savings Account (HSA).

See the following TurboTax help article to learn more:

What is Form 5329: Additional Taxes on Qualified Retirement Plans?

@saurabh-msccait

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