Search Help Topics:

To determine the Required Minimum Distribution (RMD) you need to take from your IRA in any one year, divide the IRA account balance (defined next) as of the close of business on December 31 of the preceding year by the applicable distribution period or life expectancy.

The IRA account balance is the amount in the IRA at the end of the year preceding the year for which the required minimum distribution is being figured.

Refer to the IRS Publication 590-B Distributions from Individual Retirement Arrangements (IRAs) for more information and to view the IRS Life Expectancy Tables. The information on Required Minimum Distributions starts on page 2 and the Life Expectancy Tables are in Appendix B, starting on page 44.

If you failed to take the RMD during the year you would first need to enter the excess accumulation in the TaxAct program:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal.
  2. Click Retirement Plan Income in the Federal Quick Q&A Topics menu to expand the category and then click Additional taxes on qualified plans (Form 5329) for either the taxpayer or the spouse
  3. Click Review next to the last item listed, Excess accumulation in a retirement plan and on the screen Additional Tax - Excess Accumulation in Qualified Retirement Plans enter the minimum required distribution and the actual distribution amounts.

If the actual distribution amount is not equal to or greater than the RMD for the year, click the blue Learn More icon for information on requesting a waiver of tax on excess accumulation in qualified retirement plans and follow the steps below if applicable:

  1. Click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal.
  2. Click Retirement Plan Income in the Federal Quick Q&A Topics menu to expand the category and then click Request for waiver of penalty on excess accumulation in retirement plans (Form 5329) for either the taxpayer or the spouse and complete the information on the following screens. 

Was this helpful to you?