cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

I don't understand the TurboTax checkbox for an IRA 1099-R distribution being 'all' or 'part' of the RMD. How do I decide which to check?

For example, suppose I have 2 IRAs, a big one and a small one.  The holding institutions (different) informed me that I needed to take $10000 from the big one and $2000 from the small one. ( I know that I can consider all IRAs as one for meeting the RMD, and therefore take the $12K from a single account.) But suppose I needed more money, so I took $12000 from the big one and an additional $12000 from the small one.When I get to this checkbox in TT, I can correctly answer 3 different ways: "all" the RMD came from the small IRA and none for the big one, 'all' from the big IRA and none from the other, or 'part' from both. Is there any difference? Is one of these choices any better?

1 Best answer

Accepted Solutions
Level 15

I don't understand the TurboTax checkbox for an IRA 1099-R distribution being 'all' or 'part' of the RMD. How do I decide which to check?

TurboTax only asks the question to determine how much of the distribution might have been eligible for rollover.  If you didn't roll over any part of these distributions, it doesn't matter how you answer this question.

If you did roll over any of these distributions, the first amount distributed from these IRAs is RMD up to the amount of the RMD for that particular account; the rest can be rolled over.  However, if you do not roll over any of that first distribution, the amount in excess of the RMD for that account can be applied as RMD for another of your IRAs.  In your example, if you treat the first distribution of $12,000 as RMD for both of your traditional IRAs, you can roll over any other single distribution made from any of your traditional IRAs for that year.  (Rollovers are limited to one distribution rolled over per 12 months across all of your IRAs.)

View solution in original post

1 Reply
Level 15

I don't understand the TurboTax checkbox for an IRA 1099-R distribution being 'all' or 'part' of the RMD. How do I decide which to check?

TurboTax only asks the question to determine how much of the distribution might have been eligible for rollover.  If you didn't roll over any part of these distributions, it doesn't matter how you answer this question.

If you did roll over any of these distributions, the first amount distributed from these IRAs is RMD up to the amount of the RMD for that particular account; the rest can be rolled over.  However, if you do not roll over any of that first distribution, the amount in excess of the RMD for that account can be applied as RMD for another of your IRAs.  In your example, if you treat the first distribution of $12,000 as RMD for both of your traditional IRAs, you can roll over any other single distribution made from any of your traditional IRAs for that year.  (Rollovers are limited to one distribution rolled over per 12 months across all of your IRAs.)

View solution in original post