My husband has 3 inherited IRA accounts which he receives a 1099-R for. For all three, he takes the RMD amount exactly, and ONLY the RMD amount as a withdrawal near the end of each year.
We entered the 1099-R info for each of the 3, via upload and confirmed that the amount withdrawn was equal to the amount of the RMD, yet once the "Federal Review" step took place- I received a message that states
"It looks like the difference between Michael's required minimum distribution and what M. took out for this account is $XXXXX. This amount is subject to penalty, but the rate is lower if M. withdrew the remaining $XXXXX during the correction window.
Did M. take out the remaining $XXXXX during the correction window?"
The amount it is listing just so happens to be the exact amount of the withdrawals- which is also the exact amount of the RMDs. It's like it's doubling what it thinks he withdrew? Or ignoring the information we provided to say that the entire amount was an RMD?
I called and spent 40+ minutes on the phone with one of the experts- but she was not able to figure out the problem.
I'm using the online version with "expert assist premium" if that helps.
