Just more information. I spent a bunch of time talking with a TT support person who reached out to her resources and eventually came to the same conclusion of this is a bug in TT. How did we get to that agreement?
The RMDs were paid out monthly and I had withholding taken out, those values were reported on a 1099-R and entered into TT, so there should be no other potential liability (regarding the distributions) to report.
At the point where TT asks if a RMD was required by the end of 2024, instead of the actual value of the monthly distributions we received, I pulled $5,000 out of thin air and put it in. Then I say yes the entire distribution applied to the Dec 31, 2024 RMD
Next Screen TT puts up
It Looks like the difference between "your" RMD and what was taken out for this account is $5,000. The amount is subject to penalty but the rate is lower is if the money was withdrawn during the Correction Window.
TT's explanation of Correction Window
The Correction window is a set timeframe by the IRS that would allow you to correct a missed RMD.
No RMD was missed, they were taken out monthly. Any value put into TT for a RMD required by the end of 2024 becomes a missed RMD regardless of saying yes the entire actual received distribution as noted on the 1099-R is to be applied to the required by Dec 31, 2024 RMD. With the result, the RMD was missed, you owe a penalty and did you fix it during the correction window?
Again, no RMD was missed. So it's either a bug in the wording of the questions (in TT), or it's a bug in the math.
