2024 Turbotax Deluxe not recognizing 2 separate IRA 1099-R RMD entries that equal the full RMD $ distribution and shows additional taxes are due on form 5329?

When you report your 1099-R you will be asked what amount was RMD. Be sure you answered the full amount of the withdrawal was RMD in each instance. 

Thanks for your assistance. I changed  the 1099-R's to reflect the full amount withdrawal was RMD in each instance. 

It didn't change the amount due inTurbotax and Form 5329 still shows up. It appears Turbotax is NOT picking up my two1099-R entries & totaling them to equal my 2024 RMD full amount distributed. 

No.  Turbo Tax changed this year.  When it asks about the RMD it is only asking for that one 1099R.  You need to enter the amount in box 1 on that 1099R for the RMD, not the total RMD for both.   

Thank you so much! This worked. I changed each RMD to reflect only the amount distributed for each 1099-R individually & now it's correct. No 5329 form shows up. Appreciate your input. 

I have two 1099R for two IRAs.  The first IRA I withdrew more than the RMD required.  The second IRA I withdrew less than the RMD required.   However, the combined withdraws exceed the combined RMDs.  I checked the box for each that the entire withdraw was for RMD but Turbo Tax is adding taxes to the IRA that I withdrew less than the RMD.  How do I correct it?

Did you see my post above?  Turbo Tax changed this year. When it asks about the RMD it is only asking for that one 1099R. You need to enter the amount in box 1 on that 1099R for the RMD, not the total RMD for both.

Yes, I did receive your answer and it worked for me!  Thank you so for your help.  (I send note back to you the same evening, but I must of posted it incorrectly. I'm new to this community & still learning how to use.) 

I had an IRA and a tax exempt annuity at the end of 2023. The IRA required a RMD of $3758 and the annuity required a RMD of $6366 for 2024. I combined both accounts into one in May of 2024. From January to April 2024 I withdrew $4000.00 from my annuity and $0 from the IRA, since I closed it . From May 2024 thru December 2024 I withdrew $8000 from the new combined account. I believe the combination of withdrawals should satisfy my RMD for 2024, but am not sure how to report this on  my tax return. When I enter the amounts, the TurboTax indicates that I did not withdraw enough and taxes the deficit.

I see your suggestions, but that doesn't seem to be working for me.  I have 2 RMDs and 2 forms.  I'm entering the separate RMD amounts for each form.  Turbotax is correctly summing my total RMD amount.  All my RMDs were taken within the appropriate calendar year.  But I took $6K from an account that had an RMD of $20K, so Turbotax is telling me I have to pay taxes on the balance, when my other account/form makes up the difference.  Or use that correction window option, which isn't accurate.

I have the same problem.  turbotax is not totalling up the distributions and the required RMDs correctly.  This years turbotax seems very buggy.  Works ok if you take all of each RMD from the IRA, but if you take small amounts from one and take the rest of the RMD from several accounts the totals don't add up and the tax is incorrect.

It appears the only way to get around the situation where you satisfy your total RMD by taking more that the required RMD from one account and less than the required RMD from another is by reducing the RMD entries to values not exceeding the amount taken from any account. 

 

I've used Turbotax for the last 20 years.  This will be the last time I use Turbotax unless they recognize that this is a software bug and correct the problem soon.  I don't care to file my federal taxes with falsified RMD entries just to get around a calculation error.

This just seems like an audit issue.  I agree about this being the last time I use turbotax.  Some idiot decided to "fix" something that wasn't broken and not only broke it, but seems to be unable to fix it.

I have done as you stated and TT still does not recognize it and is calculating a penalty

I am having the same issue. I received two 1099-Rs and entered them both but Turbotax is not totaling them. What am I not getting?

 

TT just suggested that I wait to file my taxes until they have a fix for this issue. I am also frustrated with the quality of the coding this year.

You are not doing anything wrong, it is a TT software issue that they seem unwilling to fix.

This is an known issue that is currently being investigated.  Please select this link to sign up for updates so we may notify you when this will be corrected. 

There are two threads describing this RMD problem.  The other one is here...

 

https://ttlc.intuit.com/community/retirement/discussion/i-have-multiple-iras-in-total-i-have-withdrawn-my-full-rmd-but-not-the-full-rmd-from-one-of-my-three/00/3437414

 

The other one has individuals who think this issue is not only unresolved, but not being acted upon.  Would you please post your notification link to that thread so they can be in this loop as one group?  Thank you

Thank you for pointing out the parallel thread and the sign-up page. This is the first real encouragement I've had since I realized there is a bug.

I hope you come up with a solution soon.  This is very frustrating.  Makes me wonder what other errors have crept into TT this year.

Yes, it is concerning what other hidden issues there is with TT.

This is day 6 for me dealing with this issue.

So much for their guarantee of 100% accuracy. 

If I take info from Box 1 on my 1099R, it is the full amount of my withdrawal for the year, which is about $16,000 more than required on my RMD.

Will this fix help if I have satisfied RMD’s from two different IRA accounts but only took a distribution from one of them and hence only have one 1099-R? What info would I input for each question they ask in TT?

Example entry of $8,000 RMD distribution reported on Form 1099-R from an IRA with $3,000 RMD. A second IRA with $5,000 RMD (nothing withdrawn from this account).

 

Please follow these steps in TurboTax Online:

 

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. Continue until "How much of the $XXXXX was a RMD?" screen and select "Only part of this distribution was a RMD" and enter the amount of RMD of $8,000  /or select "The entire distribution was an RMD" (if this distribution includes RMD for other IRA accounts then you included the amount here)
5. Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen ($3,000)
6. On the "Review your 1099-R info" screen click "Continue"
7. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select 
8.  select "An IRA..."
9. On the "Total RMD for all other IRAs" screen enter the RMD of $5,000 from your other IRAs (where you didn't take a distribution from).

 

 

In TurboTax Desktop:

 

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. On the "Required Minimum Distribution" screen enter RMD for this account ($3,000)
4. On the "How much of This Distribution Applied to your December 31, 2024 RMD" select "Some of this distribution…" and enter the RMD amount of $8,000 / or select "The entire distribution applied…"  (if this distribution includes RMD for other IRA accounts then you included the amount here)
5. On the "Your 1099-R Entries" screen click "Continue"
6. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen  
7.  select "An IRA..."
8. On the "Total RMD for all other IRAs" screen enter the RMD of $5,000 from your other IRAs (where you didn't take a distribution from).

 

@Teacha214 

I agree with this response, that it isn't accurate to say the distribution was made during the correction window.   A distribution paid timely in 2024 is not "within the correction window"

it is timely lawful distribution.   The software should be able to parse this out.  

 

Under   

 Retirement plan and IRA required minimum distributions FAQs  t

he IRC rules and regulations for this state that an "IRA owner must calculate the RMD separately for each IRA they own, but can withdraw the total amount from one or more of the IRAs." (updated January 2025).   This is true for IRAs but not for all types of Retirement plans.   If there is no distribution from an IRA fund there is no 1099-R.   As worded, the dialog boxes for RMD in Turbotax are quite insistent that one "not include the RMD for other retirement accounts you have." and RMD's for other accounts should be entered separately."      In our case there was a separate IRA account included in all of our records, which of course yearly shows the calculated RMD, but since we've held it for years and have never taken a distribution (or received a 1099-R for that IRA account).   Why cant T-Tax just say how much was the composition of total RMD for the IRAs and what amounts were applied from what account to pay it.   We also had Roth Conversion distribution, so a whole lot came out of that IRA account this year, affecting our tax.  

 

Experimenting, the only 2 choices for getting the RMD amount I could find for this year's software were  to:  

   

     a) just state the full amount of the RMDs from our 2 IRA's in the dialog box titled "Required Minimum Distribution"  for the 1099-R distribution that was made covering most    but not all  for the Required Distribution. 

   

      b)   follow the path which leads to the question Did (you) Miss a Required Distribution, Checking the first box for account type (IRA account) , fill in the amount already paid in 2024 by the distribution from the IRA 1099-R.   When I did this, magically the dialog came back "It looks like (your) IRA distributions were short of the RMD amount by -

$0

- , but then advising  " The penalty for not taking the required distribution can be reduced if you made a corrective distribution during the correction window"    

 

Neither of those alternatives seems like something I'd want to sign off on.   

I'm considering file a paper return this year unless I can figure a way to lay out the facts.

on an electronically filed return. My understanding is, you just can't. 

 

  Again,   The IRC 401 rules for this state that an "IRA owner must calculate the RMD separately for each IRA they own, but can withdraw the total amount from one or more of the IRAs." (updated January 2025).      If I have missed anything that's a better workaround or there is an upcoming de-bugged Turbotax program for this I'd appreciate a head's up.        I've used T-tax for years and don't want to lose a friend in times when help is getting thin.