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IRA RMD Error Introduced After Recent TTax Update
I believe a recent TTax update has introduced an error.
I had finished my return and was ready to file my Federal return when I was called away for about a week. When I again opened my return TTax did an automatic update. I immediately noticed that my Fed Tax Due had changed from $4660 to $23,082.
A message popped up saying that the extra $18,422 Fed tax was due to a "Tax on excess accumulations in retirement account". There was a "more info" option which opened a pop-up explaining that there is a 25% penalty for not taking IRA RMDs.
The extra $18,422 Fed tax is consistent with a 25% penalty on the total of the 3 IRA RMDs entered in TTax before the software update.
‎February 24, 2025
8:32 AM