MarilynG1
Employee Tax Expert

Retirement tax questions

If you know that you took your total required RMD from all your accounts, in TurboTax you can indicate that the RMD amount for each 1099-R is the distribution amount, and choose 'entire distribution was RMD'.

 

Although this is not technically correct, neither the IRS nor TurboTax knows what your RMD should be.  The IRS expects that your plan administrator (and you) insure that your RMD is distributed each year. 

 

This prevents Form 5329 from generating with incorrect info. However, your workaround is perfectly acceptable as well.  The bottom line is that if you didn't take your RMD, you may be assessed a penalty.  In most cases, this was due to a mistake which you explain to request a waiver of the penalty (which is usually granted). 

 

Here's more info on Form 5329.


 

@plpollack 

 

@plpollack 

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