How do I report in Turbo Tax that I took RMDs from one retirement account to cover all retirement accounts?

[jeanjared3]

I have 3 retirement accounts and must take RMDs. One is an annuity. I took extra distributions from my traditional IRA to cover the RMD for the annuity.  I've read the IRS pub on IRAs. I think it says I can do that.  But because I took no distributions, I have no 1099-R for the annuity. How do I show in TT that I have met my tax obligation for all retirement accounts including the annuity?

[dmertz]

Your tax return does not report anything that specifically associates your distributions with RMDs.  There is no need to indicate that any particular IRA's RMD was satisfied from any particular source.  Your tax return simply shows on Form 1040 line 15a (or 15b if the entire amount is taxable) or Form 1040A line 16a (or 16b if the entire amount is taxable) the total of your distributions.

I assume that you annuity is an IRA deferred annuity.  Yes, provided that your IRA annuity had a 2015 year-end balance (was not annuitized) you can aggregate the RMDs separately calculated for each of your traditional IRAs, including the IRA annuity, and take distributions from the IRAs in any combination to satisfy the aggregate IRA RMD.

[Reba4]

If no form is issued to denote which account RMD's  come from, why does Turbotax ask the question? 

[fanfare]

if you didn't satisfy the RMD you owe a penalty tax.

We're all on the honor system here.

BUT IRS can verify by crosschecking your 5498 forms.

[sravsten]

Where do I enter in TurboTax the RMD taken from one IRA to cover RMD requirement on another IRA?

[macuser_22]

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@sravsten wrote:

Where do I enter in TurboTax the RMD taken from one IRA to cover RMD requirement on another IRA?

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Actually nothing about a RMD goes on a tax return at all.  TurboTax asks the RMD question because there can be a penalty for failing to take the RMD.    If you took the RMD then say yes to the question.

For tax purposes you only have one Traditional IRA and it makes no difference what account or accounts you take the RMD from.    You simply enter the 1099-R for the distribution.    TurboTax will ask for each 1099-R if it was a RMD and will ask again after all 1099-R's have been entered if you took the RMD for the year, just answer yes.

[fanfare]

For 2020 the requirement for an RMD was waived. You would therefor always select "not required to take an RMD for 2020" 

[macuser_22]

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@fanfare wrote:

For 2020 the requirement for an RMD was waived. You would therefor always select "not required to take an RMD for 2020" 

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Good point.  I should have asked the poster if the question was for a 2020 RMD or just RMD's in general which is what I assumed -  perhaps incorrectly.

[filejulie2018]

I have the same question as above. For the last several years I have taken all my RMDs required of 3 different IRAs (2 of which are annuities) from the IRA account that does not have a term limit.

This year I noticed that there’s a directive : if the RMD entry you’ve entered includes RMD amounts for any other account, then go back and edit this form 1099 – R.  Update the RMD amount questions to reflect only amounts from this account applicable to December 31, 2024 RMD. 

[DanaB27]

Yes, there have been updates. But you still can take all IRAs RMD from one IRA account. Please see Can an account owner just take a RMD from one account for additional information.

Please follow these steps in TurboTax Online:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. Continue until "How much of the $XXXXX was a RMD?" screen and select "Only part of this distribution was a RMD" and enter the amount of RMD /or select "The entire distribution was an RMD" (If this distribution included RMD for other IRA accounts then you would include the amount here)
5. Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
6. On the "Review your 1099-R info" screen click "Continue"
7. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD"

In TurboTax Desktop:

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R” and enter your 1099-R
3. On the "Required Minimum Distribution" screen enter RMD for this account 
4. On the "How much of This Distribution Applied to your December 31, 2024 RMD" select "Some of this distribution…" and enter the RMD amount / or select "The entire distribution applied…" (If this distribution included RMDs for other IRA accounts then you would include the amount here)
5. On the "Your 1099-R Entries" screen click "Continue"
6. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD"

@filejulie2018