A follow-on question to my earlier submission.
In addition to the $4,000 RMD mentioned earlier, I inherited a 2nd generation IRA from my cousin (Suzy) who died in 2021. This was a traditional IRA that Suzy inherited from her mom (my Aunt Eleanor). My portion of the inheritance came to $3,500 total. I decided to cash it out and close the account (versus roll it over) and received the total distribution of $3,500. (NOTE: the $4000 was from Brokerage Firm A and the $3500 was from Brokerage Firm B) In regards to the $3,500 TT asks for the person I inherited the money from. I put Suzy. TT asks me if this was an RMD. I don't believe I had to take an RMD so at first I said "No, it was not an RMD". But when I said "no" it seemed to change my answer to the $4,000 RMD which is Suzy's RMD for 2021 that I have to take or pay the 50% penalty. It appears that TT sees the name "Suzy" and assumes the RMD answer is the same for both accounts. In other words I cannot say, "Yes, it is an RMD" for the $4,000 RMD AND "No, it is not an RMD" for the $3,500 total distribution. How do I resolve this? At this point I have just said "Yes, it is an RMD" for the $4,000 and "Yes, it is an RMD" for the $3,500 total distribution. Please advise!
