Can I determine why Turbo Tax thinks I did not take out my RMD?

[AuntyI]

There is a bug in TurboTax.  If you choose Partial (andmaybe only if you enter an RMD value less than the total distribution) form 5329-T gets generated.  The total distribution amount does not flow to the form as it should, while the RMD value you entered flows to "required" column.  The form then subtracts the (0-value) distribution from the required value and your distributed RMD is magically transformed into "undistributed" amount, with a penalty.  To avoid this bug, when entering 1099-R info, mark all IRA distributions as "full RMD."  Form 5329-T does not allow overrides.

The step-by-step interface for RMD is also messed up; if does not distinguish between "actual distribution" from "Required Minimal Distribution".  It does not tell the user how to enter data for the case of multiple IRAs where one has "excess" distribution that covers the requirement for another IRA that has no distribution.  (Form 5329-T does have a way to enter RMD data for the other IRAs without a 1099-R, but you cannot use it until the above bug is fixed.)

[AuntyI]

Someone said the 2/25 update fixed the problem.  I got the 3/2 update and RMD false "under-distribution" is still there.  Maybe it changed from one error to a different error, but it is still wrong.

[AuntyI]

My apologies to the others responders.  I responded to the first question I found, without reading further.  Most of what I said was already here.  But I have added that form 5329-T can be used to calculate the penalty if you did under-withdraw.  And/or report the other IRAs that soak up excess withdrawals.  But I did not experiment with how to get the real values in there (i.e., how to lie on the interview to get the correct data to flow to the form)

[agosta]

I cannot get TurboTax to recognize I have taken all of 2024 RMD.  I have entered and reentered the correct information with no effect.  What can I do?

[lesmikesell]

You have to review the 1099-Rs and re-enter the RMD amounts after turbotax installs the 3/2 or later updates.

[rowandh]

This might be considered a work around, but it works.  Assumption - that your total RMDs taken were in fact the amount you were required to take.

After entering your 1st 1099-R, in the following questions enter the amount from the 1099-R as the RMD taken (regardless of what you should have taken from that particular IRA) then select entire distribution was applied to your RMD.  Then with your 2nd 1099-R, enter the amount taken as an RMD taken, then select entire distribution applied to RMD.

You will not trigger the need for the penalty form.  TurboTax does not know how much should have been taken out of each IRA, you tell it that with the follow-on questions.  If you tell Turbo Tax what RMD was for each IRA and that the entire amount was applied to RMD, Turbo Tax is happy.

[Taxpro2025]

Beware: With traditional IRAs, you can add up the balances in all your traditional IRAs, divide the total by the life expectancy factor, and take the money from one or more accounts. However, with 401(k)s and 403(b)s, you must calculate and withdraw the required amount separately from each account.

[lesmikesell]

I got mine to work by re-entering the RMD amounts but I couldn't claim that the whole 1099-R was an RMD because one of them had a QCD and some was a Roth Conversion.

[Taxpro2025]

The QCD counts towards the RMD. 

[dmertz]

Like IRAs, RMDs from multiple 403(b) accounts are permitted to be aggregated.

[flamodeo]

This advice absolutely does not work. I only have one inherited IRA. The distribution was in excess of the RMD and TurboTax still assesses a penalty.

[flamodeo]

Unfortunately, this is not true. The penalty is still assessed by TurboTax.

[flamodeo]

As of today it does not seem to be fixed for the online program.

[flamodeo]

As of today, whether I select “all“ or “some“ I get the same result… I owe a penalty I shouldn’t have to owe because my distribution was clearly less than the RMD.

[JudithAR]

This did not work for me.  I called support. I had one inherited Roth. They had me enter zero for

RMD amount when the RMD excess accumulation worksheet came up.  That did not result in a penalty or review