The IRS only needs to know if you didn't take out the total RMD from all your accounts. They get form 5498 from your IRA accounts that tells them the RMD you need to take out. I just went though my Desktop program to test the RMD questions again. Maybe this will help especially since you have the same version as me. I still have a couple questions maybe someone could clear up @dmertz ?
10/12/25 I checked my Desktop Home & Business program again for the IRA RMD questions. No matter how you answered the RMD, it doesn't show any errors or excess accumulations until you finish entering Deductions and hit Done with Deductions at the bottom.
Then it checks for missing deductions (about 3 screens).
Then it shows your Retirement Income results screen
THEN if you made a IRA contribution or have a penalty, it shows the IRA Contributions Results screen. At the bottom of this screen it has Tax on excess accumulations in retirement account.
The Excess Accumulation in IRA accounts is on form 5329. In my test return my total RMD was 20,000 but I entered the 20,000 for the RMD on each 1099R (I had 3 1099R forms) which was wrong. So form 5329 showed my RMD for all accounts was 60,000 (20,000x3). So I had a very large penalty.
I went back and changed the RMD to the amount on each 1099R box 1. Then I didn't get a penalty or form 5329. But I only entered a total of 15,000 which was less than the total RMD 20,000. So I need to have a penalty for not taking enough.
So on each 1099R how do you answer the RMD amount due by Dec. 31, 2024 question? If you didn't take the full total 20,000 RMD over several accounts and only took out 15,000 (say 2,000+8,000+5,000)? I added the 5,000 shortage to the last 1099R and said the RMD on that one was 10,000. That worked and gave me the 25% penalty of 1,250 on the 5,000 shortage.
And how do you answer the RMD questions on each 1099R when you took out less RMD from 1 account and more RMD from another account? Then I guess you answer that the RMD is the same as 1099R box 1 as long as you took the total RMD for the year.
