Thank you very much for your very quick response and your help. Unfortunately, in my real data, the distribution from IRA-a did NOT cover the full RMD. The problem would be more accurately stated if my example had a RMD for IRA-b of $18,500. That would yield a total RMD of $38,000 instead of $30,000. That leaves a sort fall of $3,500 in the “Undistributed RMD column.
So my 5329 Smart Worksheet would show:
RMD for Account: Distributions: Undistributed RMD
From Form(s) 1099-R $20,000 $35,000 $0
Additional (enter): $18,500 $18,500
Total: $38,500 $35,000 $3,500
That means the dreaded "Was a corrective distribution made for your IRA accounts?" screen appears, since line 53a of Form 5329 only shows the $35,000 distribution. How can I cause TurboTax to include the $10,000 distribution I took from IRA-c? That additional amount will easily cover the $3,500 “shortfall”.
Is there a way for me to just correct this directly on the Form 5329? Would editing Line 53a on the form to show the additional $10,000 distribution taken from IRA-c be a possibility ($45,000 new total)? If so, how do I make that edit? I can’t find a way in TurboTax to enter data on that line.
Or am I required to mark, “Yes, a corrective distribution of the shortfall was made within the window.” And then, “Yes, I would like to fill out a waiver.” Then input the “3,500” in the “RMD Amount for Extra Tax to be waived” box, and add an explanation.
Could you please provide some guidance for the best way to work through the process?
By the way, I am using TurboTax Deluxe on a Windows machine.
Thank you very much in advance for your additional coaching!
