I agree with this response, that it isn't accurate to say the distribution was made during the correction window. A distribution paid timely in 2024 is not "within the correction window"
it is timely lawful distribution. The software should be able to parse this out.
Under Retirement plan and IRA required minimum distributions FAQs the IRC rules and regulations for this state that an "IRA owner must calculate the RMD separately for each IRA they own, but can withdraw the total amount from one or more of the IRAs." (updated January 2025). This is true for IRAs but not for all types of Retirement plans. If there is no distribution from an IRA fund there is no 1099-R. As worded, the dialog boxes for RMD in Turbotax are quite insistent that one "not include the RMD for other retirement accounts you have." and RMD's for other accounts should be entered separately." In our case there was a separate IRA account included in all of our records, which of course yearly shows the calculated RMD, but since we've held it for years and have never taken a distribution (or received a 1099-R for that IRA account). Why cant T-Tax just say how much was the composition of total RMD for the IRAs and what amounts were applied from what account to pay it. We also had Roth Conversion distribution, so a whole lot came out of that IRA account this year, affecting our tax.
Experimenting, the only 2 choices for getting the RMD amount I could find for this year's software were to:
a) just state the full amount of the RMDs from our 2 IRA's in the dialog box titled "Required Minimum Distribution" for the 1099-R distribution that was made covering most but not all for the Required Distribution.
b) follow the path which leads to the question Did (you) Miss a Required Distribution, Checking the first box for account type (IRA account) , fill in the amount already paid in 2024 by the distribution from the IRA 1099-R. When I did this, magically the dialog came back "It looks like (your) IRA distributions were short of the RMD amount by -$0- , but then advising " The penalty for not taking the required distribution can be reduced if you made a corrective distribution during the correction window"
Neither of those alternatives seems like something I'd want to sign off on.
I'm considering file a paper return this year unless I can figure a way to lay out the facts.
on an electronically filed return. My understanding is, you just can't.
Again, The IRC 401 rules for this state that an "IRA owner must calculate the RMD separately for each IRA they own, but can withdraw the total amount from one or more of the IRAs." (updated January 2025). If I have missed anything that's a better workaround or there is an upcoming de-bugged Turbotax program for this I'd appreciate a head's up. I've used T-tax for years and don't want to lose a friend in times when help is getting thin.
