2024 RMD Excess Accumulation Worksheet Problem - TTax Deluxe

[DanCl1745]

I have 4 traditional IRA accounts in my IRA, the first and second accounts withdrew nearly double their stated RMD amounts, the third account withdrew its total RMD and the fourth account withdrew only about half of its RMD.  No problems were seen when I entered the numbers for the first three accounts in their worksheets, which collectively covered my entire RMD requirements for all four accounts by almost double.  However, when I entered the total RMD amount and the withdrawal amount in the fourth account I was shown nowhere to declare that the underpayment of RMD for that account was already covered by the other accounts to satisfy my total aggregate RMD for my IRA.  What I did see was creation of a Schedule 2 and a Form 5329-T for "Additional Tax on Retirement Distributions". 

Can I expect to see this problem resolved in January when the IRA and Pension Distributions module is released for filing?

[rjs]

The 1099-R section of TurboTax for 2024 is not available yet. It is currently expected to be available January 11. (That date could change.) You must have entered your IRA withdrawals in forms mode, which does not tell you that it's not ready yet.

When the 1099-R section is available, enter your 1099-R forms in the Step-by-Step interview. After you have entered all of your 1099-Rs, continue through the questions. You will come to a screen that asks you if you took your full RMD. All you have to do is answer that you did receive your full RMD.

[DanCl1745]

Thank you for your prompt reply.

Yes, I did use the forms to enter my data since I was trying to get an early look at my tax situation instead of waiting all the way to mid-January.  Since the subject worksheet had been modified to reflect new fields/qustions relative to previous years, I just wanted to ensure I would still have the opportunity to confirm that  all of my RMD had been accounted for.

[dmertz]

This has nothing to do with the retirement section not yet being available in step-by-step mode.  The entries in forms mode that create the reporting of an excess-accumulation penalty are done directly in Part IX of Form 5329, so to get such a penalty being reported means that you made an incorrect entry there.   Examine Form 5329.

The RMD entries on TurboTax's 1099-R forms serve only to indicate the amount that is ineligible for rollover.  TurboTax has no way to determine the amount that you are required to have distributed.  Your tax return only shows an insufficient amount distributed if you self-report the shortfall on Form 5329 Part IX.

[dmertz]

Also, there have been no changes to these forms for several years.  2024 TurboTax is the same as 2023 TurboTax with respect to TurboTax's 1099-R form and 5329 form.  With respect to RMDs, the entries in 2024 TurboTax will produce the same result as in 2023 TurboTax.