My two sisters and I inherited a traditional IRA from our cousin who died earlier in 2021. She was born in 1944 and already taking her RMDs. Since she died early in 2021 she did not take her RMD for 2021. We contacted her Financial Advisor and she gave us the total RMD amount for 2021. It was approximately $12,000. So since my two sisters and I received equal amounts of inheritance from this traditional IRA we each took one third ($4,000) of the total RMD for 2021.
My questions relate to the specific questions asked within TurboTax Premier. I answered the questions as follows:
- Was this withdrawal an RMD – YES
- Tell us how much of the $4,000 I received applies to the RMD that needed to be taken out – All of this distribution was an RMD
Next Screen…
- Tell Us More About This Retirement Plan Distribution
- I needed to take an RMD or be subject to a 50% tax….
- If you didn’t take the full RMD, we’ll help you request a waiver of the tax
- Include needed required withdrawals from any inherited retirement accounts in your answer below
Select one of the following:
_X_ I received all the RMD for 2021
__ I did not receive all the RMD for 2021
__ I was not required to take an RMD for 2021
Question – should I treat my portion of the RMD (the $4,000) as “All the RMD” OR should I look at “All the RMD” as the $12,000 and select “I did not receive all the RMD for 2021”? I look at this as my responsibility is $4,000, not $12,000 and therefore “All” refers to the $4,000. Please advise.
