In 2016 I received two Required Minimum Distribution (“RMD”) payments from my 401K – one a delayed payment from the tax year 2015, the second for 2016’s tax year. How do I enter these two using TurboTax?
The cause of my confusion is the language in TurboTax when I am referring to my 2015 delayed payment: In the Screen starting with the language “About This Retirement Account … Since [ “X” ] was over 70 1/2 in 2016…” : TurboTax has the heading “Was this a withdrawal for 2016?” Then TurboTax only provides two possible options, neither of which accurately applies to this situation: Option 1: “Yes, some or all of this withdrawal was an RMD.” And Option 2: “No, none of this withdrawal was an RMD.” NOTE: Option 1 would seem to be the appropriate choice, except that the RMD does not apply to 2016. So, how do I answer this or proceed to properly enter this data?
Please also note: The following detail might not be relevant to this TurboTax data entry problem, but in case it is, I mention here that the two payouts were issued by two different payers because my previous employer split itself into parts, one of which now administers my 401K.
