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Level 3

Question

RMD withdrawel issue

Forum|Forum|1 year ago
February 9, 2025
4 replies
0 views

I have 2 RMDs from 2 1099-Rs. I'm entering the separate RMD amounts for each 1099-R. I took $360 from the account that had an RMD of $2,500, and took $5,200 from the account that had an RMD of $3,000 but Turbotax is telling me I have to pay taxes and penalty.

TurboTax Home & Biz Windows

MinhT1

Level 15

An IRA owner must calculate the RMD separately for each IRA that he or she owns, but can withdraw the total amount from one or more of the IRAs.

If you are sure that you have satisfied all RMD requirements, then in TurboTax, on each form 1099-R for RMD withdrawals, answer that The entire distribution was an RMD then on the following page, to the question What is the RMD for your account? enter the amount of the distribution from that IRA account.

By doing this, you are telling TurboTax that all RMDs are satisfied and TurboTax will not calculate any penalty. The information you entered in TurboTax is to enable TurboTax to calculate any penalty where applicable, and is not reported to the IRS.

Similarly, a 403(b) contract owner must calculate the RMD separately for each 403(b) contract that he or she owns, but can take the total amount from one or more of the 403(b) contracts.

However, RMDs required from other types of retirement plans, such as 401(k) and 457(b) plans have to be taken separately from each of those plan accounts.

Please read this IRS FAQ for more information.

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dshaferAuthor

Level 3

You keep repeating the same thing, but it DOES NOT WORK.

rivers404

Level 2

I am having the same issue. One person told me to make sure I click "entire distribution is an RMD" on each 1099 entry which I did but still have the problem. There is an error in Turbo Tax

Gloszyman

Level 2

Same problems are happening in 2025 tax year regarding RMD’s. I took out same amount we needed to and Turbo tax is showing we did not take out and penalizing us with$10,000 in taxes

MarilynG

Level 15

If you received monthly payments from a retirement plan that included your RMD, you can indicate in TurboTax that 'the entire distribution is RMD'.

If you took a one-time distribution to satisfy your RMD, again indicate that the entire distribution is RMD.

The IRS has no idea what your RMD should be (nor does TurboTax), but expects that between you and your plan administrator you will meet it, except in rare instances.

You could return to the 1099-R section and delete/re-enter your info. If you're using TurboTax Online, clear your Cache and Cookies after deleting, before re-entering.

@Gloszyman

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manolan

Level 2

I found a similar issue with the Form 5329-T. I have 2 different 1099-R forms, but only one of the 2 was included in the "Distributions:" box as opposed to the sum of the 2 1099-Rs. This caused the Turbo Tax software to imply that I didn't take out the RMD and, therefore, implied that I owed taxes in excess of $7k. I tried to get in touch with someone at Turbo Tax, waited 3 hours for a 45 minute wait notice on my callback, and finally just gave up. I then found that I could override the "Distribution:" entry with the correct entry on the actual Form and got a tax refund. Only problem now is that Turbo Tax won't let me e-file because of the change to the form that I made.

MarilynG

Level 15

It sounds like you may need to delete and re-enter your 1099-R forms, or step through the interview again. If you know that you received your required RMD for 2025, you won't have Form 5329 in your return.

After entering your 1099-R, when TurboTax asks your RMD amount, you can enter the amount of the total distribution. On the next screen, indicate that 'the entire distribution was applied to December 31, 2025 RMD'.

Neither the IRS nor TurboTax knows what your RMD should be. They expect you and your plan administrator to insure that you receive the proper amount each year.

Here's more info on Form 5329.

@manolan

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user17703278137

Level 2

I deleted the 1099’s several times and reentered them. The issue is a TT problem as after every 1099-r entry it asks what your RMD amount was. The RMD was from 2 different accounts so what TT did was add the RMD from each entry where I put the total RMD we had to take. This resulted in a double RMD amount. To work around this I entered the amount of each 1099-R as the amount of the RMD. So the 2 RMD amounts that I entered totaled my total RMD. This fixed the problem and I no longer got a huge penalty. I am hoping that TT either fixes this by asking the amount of your of your total RMD and then lets you select the 1099’s that apply or some other workaround to fix this problem. It is not illegal to do this but I wasted many hours trying to figure out why they said I did not take my full RMD and taxed me $9000 as not taking it all. Hope this helps someone else who has more than 1 1099 form

TaxMom999

Level 2

Please note, for those entering 1099-R RMD amounts, you may find Turbo Tax seemingly increasing your taxes due or reducing your refund at the top of the page. For me it showed that instead of a refund, I owed tax.

Resolution: Enter your 1099-R, Continue

Complete all following screens until you get to "Let's get more information about your Required Minimum Distribution (RMD)."

When you enter : RMD due by Dec. 31, 2025, your Tax Due may jump higher at the top of the Turbo Tax page, even reversing a refund.

Just Continue to the next page and enter the appropriate amounts for "How much of this distribution applied to your December 31, 2025 RMD?"

When I entered "The entire distribution applied to the December 31, 2025 RMD", then my tax due self-corrected, again showing my Federal Refund.

Although it gave me a heart attack in the meantime.

I suggest that Turbo Tax put both of these questions on the same page and calculate AFTER

"How much of this distribution applied to your December 31, 2025 RMD?"

I had even started trying to look for help topics and community comments on the perceived calculation problem before getting to the next page and realizing that the increase to Federal Tax Due was going to go back down to reflect my Refund Due. Unnecessarily stressful.