@AmyC So glad it worked for you, but for the rest of us, IT IS NOT!!!!! I had everything entered, no problems, no red flags, but I had not filed it yet because I wanted to double check everything. There was no problem with my return until that update arrived on the 20th. At that point, everything screwed up with the 1099.
1. First off, my annuity is not a 403b nor is it a qualified annuity. So you are telling me to lie on my tax return? I would not expect a tax expert to do this.
2. I KNOW 4D means it is an inherited non qualified annuity (which is why it is not a 403b or other qualified annuity for answering the question concerning above #1). I have had it for 4 years now. This is not my first rodeo with this.
3. My mom was already taking an RMD from the annuity when she died, so I had to continue taking an RMD when I inherited it, with no penalty attached.
4. And YES, the amount of my gross distribution is the ENTIRE RMD. My plan advisor and company know what they are doing.
5. If I enter 0 for the RMD, then I am lying because my gross distribution was an RMD.
6. If I enter the full amount of the RMD (my gross distribution), the 403b option charges me a 25% penalty, then TT flags the whole thing as an error. It says (a) Yes RMD should not be selected for this distribution, (b) RMD amount should not be entered for this distribution, and (c) Type of account should not be selected for this distribution
8. If I enter the full amount of the RMD (my gross distribution), and I enter it as another qualified plan, TT then tells me "It looks like the difference between your required minimum distribution and what you took out is...and gives the amount of my gross distribution. So what TT is saying is that my RMD is double what my gross distribution was, which is incorrect. It then charges me the 25% penalty before asking if the remaining amount was taken out in the withdrawal window. If I say no, the 25% penalty remains. If I say yes, then I get charged a 10% penalty. Neither penalty is correct. I took the full RMD as my gross distribution. The program should not be charging me a penalty, BUT IT DOES!!!!!!!! Then once again, it flags it all as an error, saying the same things as it did when I put it in as a 403b.
There are so many of us having this issue with this update. None of what any of you tax experts say to do works. Do you know how many times I have deleted this 1099 and reentered it? How many times I have gone through and answered the questions like you said? We are not the problem, so please stop telling us the same thing over and over that does not address the issue - which is that TT has a major problem in its software. As I said, I have been dealing with this inherited annuity for four years now and this is the first year this has cropped up. And there was no problem until TT sent out the update on the 20th. I feel like TT doesn't care about accuracy and truth any more, nor does it listen to its customers when they all say there is something wrong.
