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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 IRS Publication 590-B Distributions from Individual Retirement Arrangements (IRAs) for more information on RMDs, which starts on page 2, and to view the IRS Life Expectancy Tables in Appendix B, starting on page 45.

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

To enter the excess accumulation in the TaxAct program:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Retirement Plan Income in the Federal Quick Q&A Topics menu to expand, then click Taxpayer/Spouse Additional taxes on qualified plans (Form 5329) for the taxpayer or the spouse (if any).
  3. Click Review on the "Excess accumulation in a retirement plan" row, enter the Required minimum distribution for 2020 and Actual distribution(s) amounts, then click Continue.

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 do the following steps, if applicable:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Retirement Plan Income in the Federal Quick Q&A Topics menu to expand, then click Taxpayer/Spouse Request for waiver of penalty on excess accumulation in retirement plans (Form 5329) for the taxpayer or the spouse (if any).
  3. Continue with the interview process to enter all of the appropriate information.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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