1st Year RMD reporting for withdrawals made before April 1

[Paul_G]

I turned 73 in 2024 and therefore was required to take the 2024 RMD by April 1 2025. I purposely took the full amount of the 2024 RMD in November of 2024, so that I didn’t have to take the RMD for 2024 and the RMD for 2025 in the same tax year.   I received a 1099-R for the amount taken in 2024.  My question is when reporting the RMD in Turbo Tax it is asking me the following: “We need to know the amount that was required to be distributed by December 31, 2024.”   It then goes on to say “Do not include the RMDs which are due on April 1st.”    Should the answer be $0 or the amount of the distribution that I took in November?

[DianeW777 · Accepted solution]

Yes, the answer should be zero. 

In TurboTax Desktop you should enter $0 for the page you reference - Do not include the RMDs which are due on April 1st.”    Should the answer be $0 or the amount of the distribution that I took in November?   Yes

See the image below.

[tj-21]

I posted this same question in another topic/question, and was told to report it in this box.

If we put zero in this box, does turbo tax not tax it??

It seems like Turbo Tax is messed up this year in regards to RMD's and the questions.

Thank you

[tj-21]

One additional comment, if you don't report it this year, and not pay tax on it, we'll be paying tax on 2 distributions for 2025. Please advise how turbo tax is handling this in the background.

Thank you

[VolvoGirl]

Even if you put 0 in for the RMD it will still tax it.  The RMD info doesn't affect your return unless you do not take the full RMD.    So as long as you put the amount from box 1 or 0 it's ok.    It  wants to know the RMD amount so  that  if you don't take the full RMD you owe a penalty.  

[tj-21]

VolvoGirl,

The question about RMD due by April 1, 2025:

If someone waits till Mid March to take their RMD, they're going to end up with 2 RMD's for 2025 correct?

If that is true the question is a bit misleading for people??

Thank you

[VolvoGirl]

Right they will have to take 2 RMD for 2025.  I don't think the question is misleading at all.  The 2024 RMD is just the amount you took in 2024 or zero since you don't have to take it until April 1 2025.  Whatever you enter into 2024 won't affect your 2025 return next year.    

[Ken5151]

The question is how does the IRS know that the first RMD was taken in 2024 instead of 2025? I did the same thing by taking the first required payment on 12/24, which the IRS says you can do.  That way you don’t have two payments in 2025 and raise you tax bracket and Medicare tiers. I don’t know how TurboTax is handling the 2024 distribution.  Will the 2025 filing address that? 

Thanks!

Ken

[VolvoGirl]

@Ken5151  If you took the full 2024 RMD in 2024 there is nothing to go on your 2025 return about it, just the 1099R for the 2025 RMD.  

[Ken5151]

But TurboTax needs a way to reflect the 2024 payment so that the IRS recognizes the April 2025 payment was made in 2024, which the IRS says you can do. That way,  you can then make only the remaining required  December 2025 payment in 2025.  The point is to not make two payments in 2025 and raise your tax bracket and Medicare tiers. Thank you!

[Ken5151]

If 2024 RMD withdrawal was never indicated in 2024, and you only make the 12/2025 payment, how would the IRS know that you’ve met both withdrawal requirements?

[Ken5151]

Hi Diane,

But don’t you need a way to reflect the 2024 payment so that the IRS recognizes the April 2025 payment was already made in 2024, which the IRS says you can do. That way,  you can then make only the remaining required  December 2025 payment in 2025.  Are you able to reflect that when you file your 2025 taxes in 2026?

The point is to not make two payments in 2025 and raise your tax bracket and Medicare tiers. Thank you!

ken

[MarilynG1]

It seems you're combining a question on RMD and making Estimated Tax Payments, so I'm confused as to what your actual question is.  Your tax bracket wouldn't normally go up unless you receive a large amount of income in one year, and we can't speak to Medicare tiers in this forum, although this link from Medicare may answer your question. 

Here's more info on Is My Retirement Distribution RMD? and RMD FAQ's. from the IRS. 

Also, a detailed article on Paying Estimated Taxes and Where to Enter Estimated Tax Payments, including those made for 2025 in 2024.

@Ken5151 

[fanfare]

report on your 2024 return the amount you took out. which happens to be the entire required amount.

then you are done.

The turbotax questions are messed up.

the best workaround I've seen so far is "Tell TurboTax your required distribution is Zero."

[Ken5151]

Sorry if I’m confusing everyone!

My question has nothing to do with estimated tax payments. And Medicare Tiers has nothing to do with these questions other than the higher your income, the more you have to pay for Medicare payments, which is based on your income from the year prior.  So you can ignore these two issues. 

IRS says you have two required RMD payments the year following the year you turned 73. The first payment is REQUIRED to be made April 1 and the second by December 31.  IRS also says you can make the April 1 payment the same year after you turned 73. Let’s just say you made that payment 12/31 of the year you turned 73. 

Since it’s not a required payment at that point, all the responses about putting in”zero”  to the TurboTax question about required payments seems correct.  My question is how will the IRS know the next year that your April payment was already made before it was due and you should only need to make the December payment?  It seems TurboTax should include some indication for the next year that first payment was already made.  

As the original poster said, the intent is to spread out the two payments into two years, as allowed by the IRS, so you don’t have two payments in one tax year.   I don’t know how to make this any clearer!