I have a 1099-R for the RMD taken from the IRA that I inherited from my mother, who passed away in 2023. Because the investment company was so difficult to work with, they didn't transfer the ownership until 2024, so that both the 2023 and 2024 RMD's were taken during 2024. They told me there would be no penalty and I see that the IRS has extended the grace period for taking the RMD after death to December 31 in the year following the death. That means that we fall within that grace period. My problem is how to convince Turbotax Home and Business of this.
When I enter the 1099-R and click through the screens, Ido I enter the whole amount for RMD due by December 31, 2024. Do I mark that SOME of the distribution applied to the December 31, 2024 RMD and enter that amount? If I do that, it gives me a chance to select that I took it out during the correction window, so that the penalty is lower, but there shouldn't be a penalty at all. I am unsure how to navigate this without paying a penalty that I don't owe. I appreciate advice on this.
