My 1099-R form indicates that the entire 401K distribution ($70K) was rolled over into IRA so no taxable amount is listed, but in reality I held back some money to cover the RMD because no automatic RMD was distributed. In Turbo tax I identified some of the distribution as being RMD and gave amount of $5800 as received and then listed the RMD as $5506. Turbo tax then states "It looks like the difference between your required minimum distribution and what you took out for this account is $5506. This amount could be taxed, but the rate is lower if you withdrew the remaining $5,506 during the correction window. Did you take out the remaining $5506 during the correction window? What??? This makes no sense! All of the money held back from going into the IRA ($5800) should be taxed but without any penalties. There is no correction window that applies here. All money was received in 2024. I tried to work around this by putting in $0 for RMD so the "correction window" question did not come up but later I saw that the $5800 did not show up as taxable. What am I doing wrong? Any suggestions would be greatly appreciated!
