My wife is in the same situation regarding an inherited IRA RMD now for tax year 2024. The actual RMD amount was $2459, but she went ahead and withdrew $8000, mainly because she’ll be facing multiple other RMDs for other regular IRAs in about 6 years, so she’s taking more from this one now to spread out the taxes owed which will be owed on RMDs in general in the near future. Having taken $5541 more than was “required” from this non-spousal inherited IRA, how should she answer the “was the entire amount for an RMD or not” TT question prompt? Will answering “yes” as opposed to “no” cause TT calculate the taxes due differently—or incorrectly? It shouldn’t, but the question the way it is phraed seems nebulous to me, so we wanted to be sure. We just want to make sure she is taxed properly for the $8000 withdrawal now and not just for the $2459 that was required, so we don’t incur a penalty from the IRS for underpayment down the road. I wish TT had phrased the question more like “was this distribution you took more than what the RMD amount actually required?” That is the case here, so the answer would be “yes.” With that in mind, how should she answer the TT question? And yes, she made enough money in 2024 to qualify for a maximum Roth IRA contribution for 2024 ($8000) , which she did. Thanks in advance for your help.
