1099 R minimum distribution is showing a penalty when I took the correct RMD

[Nakwitt]

How do I contact TurboTax to not have a penalty on my inherited Ira RMD?  I took the correct rmd amount and they want me to pay a penalty.  

[DanaB27]

To clarify do you have more than one inherited IRA? Is it inherited from the same person? If it from the same person then you can take funds from the other inherited IRA but might have to adjust how you enter this in TurboTax.

From the Learn More link on the RMD page in TurboTax:

"If you have more than one IRA, you can usually take money out of any of them to meet the minimum amount you have to take out each year. But this does not work if the IRAs were inherited from someone who died.

If you inherited an IRA from someone, you have to take the minimum amount out of that exact IRA. For example, you cannot take money out of your own IRA to meet the minimum for an inherited IRA.

The only time you can use one inherited IRA to meet the minimum for another is if they were both inherited from the same person. For example, if you inherited two IRAs from your mother, you can take the total minimum amount required from just one of her IRAs.

If you do take the minimum amount from just one inherited IRA, you may have to adjust how much you report taking from each. Using the example, if each IRA required $20,000 but you took $30,000 from one and $10,000 from the other, you would report $30,000 and $10,000, respectively, as the RMD for each account.

The total RMD you report for all IRAs inherited from the same person must match the actual total, even if the amounts from specific accounts vary."

Please review these steps:

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R” and enter your 1099-R
3. Enter the RMD amount for on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
4. Continue until "How much of this distribution applied to your December 31, 2024 RMD?" screen and select "The entire distribution was an RMD" /or select "Only part of this distribution was a RMD" and enter the amount of RMD 
5. On the "Here's your 1099-R info" screen click "Continue"
6. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024.

Please see What's the TurboTax phone number?

[NCperson]

@Nakwitt  what code in is Box 7?  should be a "4".  if it is a '1', you may have to contact the Administrator for clarification.

a "4" indicates an inherited account and there is no early withdrawal penalty.