Dear MinhT1, Employee Tax Expert
I assume you are an employee at TT, perhaps you can help us.
Your response is what the IRS says, but it does not tell us how to fill in the boxes in Turbo Tax. Please give guidance.
You say the RMD must be calculated for each account. So is it correct to say that the required RMD is for only the one specific account? This makes sense.
For the portion of the distribution that applies to the RMD, you say it can come from any account. Are you stating that if we have a distribution in ANY account that covers this we should put it in here? I think so, but please confirm.
So here is an issue with the above. If I have two IRAs, and take my full distribution for both from one account, this follows IRS rules. However, the one with no distribution will not be issued a 1099-r. The one with the distribution, following your rule, would have the RMD covered, and the excess would go just as a taxable distribution. Therefore the total RMD for both accounts would not be recorded. The IRS gets a Form 5498 for every account, and they will know what the total of the two accounts RMD is, which is vastly different from what the tax return will say. It is also true that if RMD on the first one has not been covered, the penalty will not be detected. I can manipulate this scenario in multiple ways to make Turbo Tax fail, but I will leave you with just the one.
Please indicate the correct way to do this that works in TT.
By the way, I don't think there is one. The software is broke.
Thank You!
