DanaB27,
Thank you for your response! After carefully reading the IRS instructions for Form 1040, I can now see that TurboTax entered the correct numbers on line 4a and 4b for the 1099Rs, which is great!!
That said, it appears there is still a data problem with TurboTax. Here is the Form 5329 “Smart Worksheet” generated from the example data at the bottom of my post:
RMD for Accounts: 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
It looks like TurboTax only included the $35,000 from IRA-a, but did NOT include the $25,000 distribution from IRA-c. Maybe that was because there no RMD required from IRA-c?
Shouldn’t the “Distributions” column on the Form 5329 worksheet show the total distribution of $60,000 (vs. the $35,000 that it shows)? That shows a $3,500 shortfall between my RMD and the total distribution, and that causes an extra $350 in tax (shown on Form 5329 Line 54a), which then flows through to Form 1040 Line 23.
Is there a way for me to fix this in the Forms method? Or have I entered something incorrectly?
As a side note: Line 44 on the “1099 Summary” appears to be incorrect. It only shows the $20,000 RMD from IRA-a but not the “Additional” $18,500 RMD from IRA-b (where I didn’t take a distribution; so there wasn’t a Form 1099R created).
I look forward to your advice!
Here is the example data:
- For IRA-a:
- “Required Minimum Distribution” screen: $20,000
- Total distribution taken (box 1 on 1099R): $35,000
- Marked “The entire distribution applied to the RMD”
- Marked “part of this distribution transferred to charity”
- QCD screen: $30,000
- “How much of this Distribution Applied” screen: Entire amount
- For IRA-b:
- RMD: $18,500
- Distribution taken: $0 (from this IRA)
- No 1099R so no entry and no place to make an entry
- For IRA-c:
- “Required Minimum Distribution” screen: $0
- Total distribution taken (box 1 on 1099R): $25,000
- $10,000 for RMD
- $15,000 for conversion to Roth
- QCD screen: None
- “What did you do with the Money” screen: marked “Combination of rolling over, converting, or cashing out the money”
- “Amount converted to a Roth IRA account”: $15,000
- “How much of this Distribution Applied” screen: Entire amount
