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Larrd
New Member

How do I enter my delayed 2015 401K RMD in 2016 ?

In 2016 I received two Required Minimum Distribution (“RMD”) payments from my 401K – one a delayed payment from the tax year 2015, the second for 2016’s tax year.  How do I enter these two using TurboTax?  

The cause of my confusion is the language in TurboTax when I am referring to my 2015 delayed payment: In the Screen starting with the language “About This Retirement Account … Since [ “X”   ] was over 70 1/2 in 2016…” :  TurboTax has the  heading    “Was this a withdrawal for 2016?”  Then TurboTax only provides two possible options, neither of which accurately applies to this situation: Option 1: “Yes, some or all of this withdrawal was an RMD.” And Option 2: “No, none of this withdrawal was an RMD.”  NOTE: Option 1 would seem to be the appropriate choice, except that the RMD does not apply to 2016.  So, how do I answer this or proceed to properly enter this data?

Please also note: The following detail might not be relevant to this TurboTax data entry problem, but in case it is, I mention here that the two payouts were issued by two different payers because my previous employer split itself into parts, one of which now administers my 401K.
1 Best answer

Accepted Solutions
dmertz
Level 15

How do I enter my delayed 2015 401K RMD in 2016 ?

Ignore the fact that TurboTax asks if this was "for 2016."

The text in TurboTax does not properly account for the fact that you might be taking a delayed distribution.  What TurboTax really is asking is if any portion of the distribution was RMD.  In your case, answer Yes.

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4 Replies
VolvoGirl
Level 15

How do I enter my delayed 2015 401K RMD in 2016 ?

@dmertz can help with this one
fanfare
Level 15

How do I enter my delayed 2015 401K RMD in 2016 ?

This doesn't matter . you are taking RMDs and taking both RMDs in tax year 2016. Just answer that you are satisfying the RMD requirement.
dmertz
Level 15

How do I enter my delayed 2015 401K RMD in 2016 ?

Ignore the fact that TurboTax asks if this was "for 2016."

The text in TurboTax does not properly account for the fact that you might be taking a delayed distribution.  What TurboTax really is asking is if any portion of the distribution was RMD.  In your case, answer Yes.

bosso3
Level 7

How do I enter my delayed 2015 401K RMD in 2016 ?

I am not a tax professional.

You said the 2 payouts were issued by 2 different payers.  This means that you should have received 2 Form 1099-R s - one from each payer.  If so, enter each 1099-R separately.

If you only received one 1099-R, you may be missing the second one, or you may have been paid by the same company.  Your employer or plan representative should be able to help you determine this.

Finally, if you are in fact being paid by 2 separate companies and receive 2 1099-R s, you likely now have 2 "retirement plans"  (401k s) and would need to take an annual RMD from each plan.  (This is different for IRA's.)  For details see:  https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-required-minimum-distributions#...

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