Either there was some change on 09Jan25 to the algorithm for entering the 1099-R traditional IRA account data or I was likely answering their questions incorrectly. When I now do the following for my IRA account that did not withdraw its full RMD amount, I no longer trigger Form 5329:
Was this withdrawal an RMD for 2024?
- Yes, some or all this withdrawal was an RMD
Tell us how much of the (rec'd amount) (You) received applies to the RMD that needed to be taken out
- All of this distribution was an RMD
What was the required minimum distribution for (Your) account in 2024?
- Required Required Minimum Distribution Amount > $$$$
Did (You) take out the remaining (shortage amount) during the correction window?
This seems to have satisfied the algorithm to not trigger Form 5329. I can only guess that when I answered "No" it then reviewd my other 3 IRA accounts and confirmed that their withdrawal totals more than covered my total RMD for my 2024 Individual Retirement Arrangement. I really wish they would have created something in the 1099-R Worksheet that illustrated just how that was being done. Maybe next year.....
