There is no requirement to file Form 5329 unless you didn't meet the requirement. So you could enter any amount into the TT RMD question and as long as your 1099 distribution was higher than that amount, then TT does not generate 5329. The entries you make into the RMD question do not enter into your tax return at all. I have most investments in an IRA that I take no distributions from, so no 1099 is generated. I transfer funds from that IRA into others, then take distributions for which 1099s are generated. I enter the 1099s into TT with the correct Box amounts, but then enter a "calculated" RMD amount into the RMD question which is lower than the reported distribution. So 5329 is not generated. If you wanted, you could enter the same distributed amount into the RMD question but you might run into the "rounding error" that was reported here earlier. At the end of the TT section of 1099s in Step-by Step, there is a question of "did your fail to meet the RMD", and you simply answer "no" then you're done. IRS could potentially receive institution reports of account balances to check RMD, but I'm not aware of any routine reconcilation with the actual returns. In essence, you do not have to report your total calculated RMD amount on the return anywhere. Just record the 1099s as they appear. TT only asks this question to prompt you to go to 5329 if you didn't make the RMD needed. If you did make your RMD, then 5329 is not needed. There is no IRS requirement that you justify this using TT. Shame on TT for not providing the correct guidance on this.
