There is a bug in TurboTax. If you choose Partial (andmaybe only if you enter an RMD value less than the total distribution) form 5329-T gets generated. The total distribution amount does not flow to the form as it should, while the RMD value you entered flows to "required" column. The form then subtracts the (0-value) distribution from the required value and your distributed RMD is magically transformed into "undistributed" amount, with a penalty. To avoid this bug, when entering 1099-R info, mark all IRA distributions as "full RMD." Form 5329-T does not allow overrides.
The step-by-step interface for RMD is also messed up; if does not distinguish between "actual distribution" from "Required Minimal Distribution". It does not tell the user how to enter data for the case of multiple IRAs where one has "excess" distribution that covers the requirement for another IRA that has no distribution. (Form 5329-T does have a way to enter RMD data for the other IRAs without a 1099-R, but you cannot use it until the above bug is fixed.)
