The fact that this is an inherited IRA will make a difference in the screens that you are seeing. I'm going to recopy my instructions above and make some changes to them to account for an inherited ...
See more...
The fact that this is an inherited IRA will make a difference in the screens that you are seeing. I'm going to recopy my instructions above and make some changes to them to account for an inherited IRA. I'll also modify them for the online TurboTax:
Go to IRA, 401(k), and pension plan withdrawals on the left side menu
Scroll down to the IRA, 401(k), Pension Plan Withdrawals (1099-R) section under Retirement Plans and Social Security and click Start or Update
On the 1099-R summary page, click Add another 1099-R
Click the 1099-R tile on the upper left, then Continue. If you want more information on the substitute 1099-R, you can click on the What if I don't have my 1099-R? at the bottom of the page.
Enter your 1099-R provider info, then click Continue.
On the Enter your 1099-R details from [custodian], enter the amount of the RMD in Box 1 and Box 2a. If you have any non-deductible contributions in your account, you can click the box in 2b for Taxable amount not determined.
Enter any Federal Income Tax that you had withheld (if any) in Box 4
In box 7 enter a distribution code of 4
Check the box for IRA/SIMPLE/SEP box is checked if an IRA
Scroll down and click Continue.
on the "Do any of these situations apply to you?" screen, check the box for "I inherited this IRA" and I need to file a substitute 1099-R" then click on Continue.
Enter the information about who you inherited your IRA from, then Continue
Check if you had any non-deductible contributions, then Continue
Enter the information about the year of birth of the decedent.
Enter the RMD that was supposed to be taken last year in the RMD due by 12/31/25 box, then click Continue.
Select "None of this distribution applied to the December 31, 2025 RMD", then Continue
On the "Tell us what kind of IRA you have" - check the appropriate box, then Continue.
You'll now have screens explaining the substitute 1099-R process. You'll be asked for explanations for how you determined the amount of RMD and taxes withheld. On a screen titled "Explain how you tried to get a 1099-R", just explain that you took the distribution late and were making a corrective RMD. Skip printing and attaching Form 4852.
Click Done on the Your 1099-R summary page
Answer questions about disaster distributions, and non-deductible contributions, and rollovers, etc.
On the screen "Let's go over any required minimum distributions (RMD)", click the pencil icon to edit your information
Click Yes to missing your RMD, then Continue
Select the type of account, then Continue
Since you already entered the RMD earlier, on the screen "Tell us the total RMD for you other IRA accounts" enter a zero.
Select Yes, I would like to fille out a waiver statement, then Continue
Enter the amount of the corrective RMD that you want the IRS to waive tax on, then Continue
You'll enter an explanation on the next page about the missed RMD and how you plan to not do this again in t
Your taxes are now calculated based on getting a waiver of the 10% penalty for the late distribution.
It's uncommon for the IRS to reject a waiver request if you can show that the shortfall in the distribution was due to a reasonable error and that you are taking steps to remedy the shortfall. If the IRS has any questions or needs more information to approve your waiver, they will reach out to you directly.