tax on excess accumulations in retirement account

Forum|Forum|1 year ago
March 25, 2025
2 replies
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2024 online taxes:

We have two separate 401K's and a matching1099-R for each, covering the RMD's. I have entered them each separately.

I have a third 1099-R for a retirement account (Olin) that has been paying the exact same amount monthly for the last 29 years which does not require an RMD.

Turbo Tax now, for the first time, reports "tax on excess accumulations in retirement account" and includes a large tax fine. There is no "excess accumulation" in any account, so how do I find out which account is flagged and how do I get rid of the problem? I have already reviewed all 1099-R's but there is nothing that needs editing.

I have not encountered this problem with Turbo Tax in previous years.

Other

DanaB27

What is the code in box 7 for the third Form 1099-R? Did TurboTax ask you for the RMD for this account? If yes, can you enter $0.

Please see Can an account owner just take a RMD from one account for additional information.

If you still are having issues you can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Online:

From the left menu select Tax Tools.
Then select Tools below Tax Tools.
A window will pop up which says Tools Center.
On this screen, select Share my file with Agent.
You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number.
Reply to this thread with your Token number and add @DanaB27 . This will allow us to open a copy of your return without seeing any personal information.

The instructions for TurboTax Download:

On your menu bar at the very top, click "Online"
Select "Send Tax File to Agent"
Click "Send"
The pop-up will have a token number
Reply to this thread with your Token number and add @DanaB27 . This will allow us to open a copy of your return without seeing any personal information.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

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dmertz

Employee

For each Form 1099-R, enter as the amount required to be distributed only the amount required for that particular account, not the total amount required for all accounts. For the pension, enter as the required amount the gross amount distributed.