I'm helping my sister who is 74 with her taxes, She has 3 IRA's and takes money from 2 of them to live on. The withdrawn amounts far exceed her RMD requirement. The one 1099-R has code 2 in Box 7. I 2023, the same applied and the amount of withdrawal was included towards her RMD. In 2024, the amount is excluded and only calculates off the one withdrawal and not both. So when I add the information for the 3rd, the RMD amount calculated is short and a penalty is applied. If I change the code to 7, normal distribution it calculates correctly. Has anyone experienced this and how to address it? Thanks in advance
Code 2 is never correct for a distribution paid to someone over age 59½. Contact the payer to make sure that the payer has the correct birthdate for your sister and to obtain a corrected Form 1099-R showing code 7.
Thank you - That is what I believed the issue was based on my research. We have a call into her Financial person to reach out and get this addressed for her and to re-issue an updated 1099-R.
enter as "amount of RMD" the amount distributed.
OR, enter "amount of RMD" = Zero.
TurboTax 2024 has problems with RMDs.