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New Member
posted Feb 17, 2025 1:48:44 PM

Do I enter a RMD value for an Inherited IRA or enter zero when asked in the 1099-R form entry for 2024? (RMD penalties were waived including 2024)

Inherited IRA for Nonspouse – Noneligible Designated Beneficiary IRS waived RMD penalty(inherited IRA) including 2024 Turbo Tax is asking what should of been RMD so I use an RMD calculator and entered result I did take a withdrawal which was less than RMD calculator result

0 4 1560
4 Replies
Employee Tax Expert
Feb 23, 2025 5:36:06 PM

As long as you are taking the RMD that would have applied to the individual that you inherited the IRA from, then you will be considered as making the required RMD for the year.  You are also subject to the 10 year rule where the entire account must be emptied by the end of the 10th year following the individual's death.  Please see this IRS link for more details on beneficiary rules for retirement accounts.

Level 15
Feb 23, 2025 5:58:56 PM

You're basically taking advantage of the IRS generosity by distributing less than the required amount.

That won't be successful for the 2025 RMD to be taken by Dec 31.

Caution: make sure the calculator you are using will handle Inherited IRAs, where the rules are complex.

OR
ask the custodian if they can calculate it for you.

 

@pauljodea 

Level 15
Feb 23, 2025 6:51:28 PM

The penalty for filing to take a beneficiary RMD only applies to those beneficiaries who are subject to the 10-year rule.  If you are subject to the 10-year rule and chose not to take an RMD from the inherited IRA in 2024, you can simply indicate that the required distribution from the inherited IRA was $0.  This will prevent TurboTax from unnecessarily preparing Form 5329 Part IX since the penalty waiver is automatic.

Level 15
Feb 23, 2025 8:08:07 PM

The penalty for failing to take a beneficiary RMD applies to those beneficiaries who are subject to RMD based on  the pre-2020 rules.

IRS did not waive penalties for such beneficiaries.