How does TurboTax 2025 handle RMD's with IRA's and Annuities considering Secure Act 2.0, section 204?

[scschulte]

It is 2026 and time to actually do our 2025 US Income taxes, I'd like to know from TurboTax just how they are handling RMD's with regard to the Secure Act 2.0, section 204.  Here is an example:

I have a regular IRA which has an RMD in the amount of $30,000 to be withdrawn in 2025.

I have 3 annuities which are Qualified plans.  The amounts they paid me in 2025 and the RMD minimums are as follows:  (amounts are not actual values - for illustration for this question)

Annuity-A:  $5000 paid and $3000 required to meet RMD ($2000 more paid than RMD required)

Annuity-B:  $4,000 paid and $2000 required to meet RMD  ($2000 more paid than RMD required)

Annuity-C:  $10,000 paid and $4000 required to meet RMD  ($6000 more paid than RMD required)

Therefore the 3 annuities paid me $10,000 more than required to satisfy their RMD requirement.

So with Secure Act 2.0, section 204 I can use that $10,000 to offset the $30,000 required to be withdrawn from my IRA account (and then just withdraw $20,000 from my IRA and be in full RMD compliance).

MY QUESTION IS:  How does TurboTax do that?  How do I see that TurboTax is doing this correctly?  AND: If TurboTax cannot do this via "EasyStep" -- how do I input everything in the FORMS section to get this correctly entered?  

Thanks very much.

Stephen S. on Monday 16 February 2026

[ReneV4]

TurboTax can use the RMD from you to satisfy all of your RMDs. You will also be able to see the finished results, which I will explain below. And, no, you should not have to make any adjustments in Forms Mode to make your Form 1099-R entries.

To report each of your Form 1099-R distributions for your annuities and IRA, including the RMDs as you have indicated for each, do the following:

1. Go to Wages & Income and enter the first annuity Form 1099-R (Gross distribution, etc.) 
2. Next, when you reach, "Let's get more information about your RMD", enter the amount including the total toward the RMD amount (e.g. $5,000 from above), Continue
3. Next, select, The entire distribution applied to the December 31, 2025 RMD, Continue
4. Do this with each of your annuities
5. When entering your IRA, you would indicate that the $20,000 was the RMD, as well as the entire distribution.
6. Next, in the Review your 1099-R summary, Continue (not the pencil)
7. Continue answering the questions
8. Next, when you see "Let's go over any required minimum distributions (RMD), select Continue (not the pencil)

Note: If you are asked, "Did you miss an RMD?", select "No". 

By entering each distribution above, you will satisfy the RMD for your IRA as well as your annuities.

To confirm the entries, go to Forms Mode and check your Form 1040, Line 4a and 4b. You should see a $39,000 in total distributions, which is more than your RMD.

[scschulte]

Hello,

I follow you up until your final sentences where you say at the very end:

To confirm the entries, go to Forms Mode and check your Form 1040, Line 4a and 4b. You should see a $39,000 in total distributions, which is more than your RMD.

In my example, $39,000 is not MORE than my RMD - it is EXACTLY my RMD - so not sure why you said "more than" my RMD??

Otherwise I think I follow you and will try that tomorrow!  

Thanks for any additional comments and really appreciate this prompt, personal and professional reply!

Steve on Tuesday 17 February 2026