How enter an RMD for an account where no 1099-R was issued because there was no distribution and distribution from another account.

[Fiberglass72]

I’m not sure TurboTax multi-IRA distribution problem is completely fixed.  It seems to work for a fairly simple case, but that’s not what I have. 

Here’s my case (using imaginary figures), and I NEED HELP to find a way to make TurboTax to work:

• I have three IRAs.  Let’s call them IRA-a, IRA-b, and IRA-c
• IRA-c was funded mid-year by a transfer of funds from IRA-b to IRA-c
  • That means IRA-c has no RMD (because it’s value was zero on 12/31/24
• Overall 2024 RMD requirement:  $30,000 (set by the IRA values on 12/31/2023)
  • RMD for IRA-a:  $20,000
  • RMD for IRA-b:  $10,000
  • RMD for IRA-c:   $0 (because it’s value was zero on 12/31/24)
• Total DISTRIBUTIONS taken in 2024 and shown on the 1099Rs:  $60,000
  • 1099R for IRA-a: $35,000 distribution
    • $30,000 of the distribution was via QDCs for IRA-a
    • I took an extra $5,000 in the distribution to cover a RMD shortfall from 2023
  • No 1099R sent for IRA-b because I did not take any distribution from that IRA
  • 1099R for IRA-c:  $25,000 distribution
    • I chose to take a $10,000 distribution from IRA-c to cover the remaining part of my overall RMD not covered by QCDs
    • $15,000 distribution for a Roth conversion

The desired state (I think) on Form 5329 “Part IX Additional Tax of Excess Accumulation Smart Worksheet”:

RMD for Account:           Distributions:                  Undistributed RMD

From Form(s) 1099-R     $20,000                             $30,000                             $5,000

Additional (enter):          $10,000                                                                        $25,000

Total:                                 $30,000                             $60,000                            

I followed very clear example provided by DanaB27 in this way:

• For IRA-a: 
  • “Required Minimum Distribution” screen:  $20,000
  •  Marked “The entire distribution applied to the RMD”
  • Marked “part of this distribution transferred to charity”
  • QCD screen:  $30,000
  • “How much of this Distribution Applied” screen:  entire amount
• For IRA-b: No 1099R so no entry and no place to make an entry
• For IRA-c: 
  • “Required Minimum Distribution” screen:  $0
  •  QCD screen:  None
  • “What did you do with the Money” screen:  marked “combination of rolling over, converting, or cashing out the money”
  • “Amount converted to a Roth IRA account”:  $15,000
  • “How much of this Distribution Applied” screen:  entire amount

Here is what the 5329 Smart Work shows:

RMD for Account:           Distributions:                  Undistributed RMD

From Form(s) 1099-R     $20,000                             $35,000                             $0

Additional (enter):          $25,000                                                                        $25,000

Total:                                 $45,000                             $35,000                             $10,000

I realize that this example sounds like the examples the IRS uses in their instructions (cram every possible scenario into one example).  But, that is really the case I have.  I sure wish I had not done it this way, because I had no idea of the tax reporting chaos I was inflicting on myself.  I won’t do it this this in the future!

PLEASE, someone give me some help where I can file my taxes.  I am willing to use the TurboTax interview method or put the information directly into the IRS forms via the forms method.  I just need the knowledge of how to proceed.

[DanaB27]

It seems you entered $25,000 instead of $10,000 on the "Total RMD for all other IRAs" screen (enter the RMD from your other IRAs where you didn't take a distribution from). This should be the $10,000 RMD for IRA-b where you didn't take a distribution.
 

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R” and enter your 1099-R for IRA-a
3. On the "Required Minimum Distribution" screen enter RMD for this account $20,000
4. On the "How much of This Distribution Applied to your December 31, 2024 RMD" select select "The entire distribution applied…"  
5. Answer the "Transfer to Charity" screen select "Part was transferred to charity" 
6. Amount transferred to charity enter $30,000
7. On the "Your 1099-R Entries" screen add the 1099-R for IRA-c
8. On the "Required Minimum Distribution" screen enter RMD for this account $0
9. Answer the "Transfer to Charity" screen select "None was transferred to charity" 
10. On the “What Did You Do With The Money” and choose “I moved it to another retirement account”
11. Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the converted amount next to "Amount converted to a Roth IRA account" (S15,000)
12. On the "Your 1099-R Entries" screen click "Continue"
13. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "An IRA..."
14. On the "Total RMD for all other IRAs" screen enter the RMD from your other IRAs where you didn't take a distribution from ($10,000 RMD for IRA-b).

You are not required to file Form 5329 since you met all of your RMD. TurboTax will enter the information in the "Additional Retirement Account Smartsheet" to check that you met the RMD. You can see this in TurboTax Desktop when you switch to form mode and look at Form 5329 but this will not be sent to the IRS.

When I enter it with the steps above I get this and it show the RMD for 2024 was met and Form 5329 will not be filled out and not sent to the IRS.

Note since you indicated IRA-c doesn't have a RMD it is not included here and you do not get the "How much of This Distribution Applied to your December 31, 2024 RMD" screen to indicate that you used this distribution towards the RMD. But the distribution from IRA-a covered all of your RMD for 2024 so this still shows you took all your RMD. And as mentioned before the Smartsheet is only for your records and does not get sent to the IRS.