Confused about what I"m supposed to enter in this situation. We transferred my Dad's IRA to a new custodian mid-year 2025. Dad was getting $500 per month, which totaled $3500. Once transferred to the new custodian, he took a lump sum $2000 distribution. Unfortunately, we missed taking into account 1 month in the transition so he missed $250.66 in RMD. We have a corrective distribution coming from the new custodian for the missed $250.66 today. I'm trying to fill out the information in TurboTax now and am completely confused what I'm supposed to enter to make things come out right.
Tell us the total RMD for your other IRA accounts
Enter the total RMD due by December 31, 2025 for all IRAs you didn't take a distribution from in 2025.
I'm guessing I'm only supposed to enter the $250.66 amount that was missed here, but it's not crystal clear. If I put that amount in, however, it displays on the next screen:
It looks like your IRA distributions were short of the RMD amount by $6,029.66.
What??!! How did it come up with that number and is it really calculating the 25% or 10% penalty based on that figure? Yep. The next screen shows:
We've calculated a penalty of $603 based on the amount not distributed in 2025.
At worst, the penalty should be $60.67 on the $250.66 shortfall. $25.07 if it's waived down to 10%.
What's going on here? Bug or something I'm not entering correctly?
