I have 2 1099R; same company separate accts. While entering one, TT asks for RMD. If I enter 2024 RMD, TT adds penalty tax. Should I enter RMD for 1099R I'm entering?

[agoodrich23]

Since each 1099R only lists partial RMD withdrawals that add up to 2024 RMD, should I enter the RMD for each account? If I enter the total 2024 RMD while entering each 1099R, then TT calculates penalty tax.

[agoodrich23]

Hello, since this was my first post, I don't know if it's normal to not have received any comments yet.  If there are any moderators, then could you please let me know if I just need to be patient or if I need to clarify my post.

Thank you,

Al

[DaveF1006]

It depends. In order to accurately report your RMD information, you must know the total amount of your RMD requirement for the year. You may aggregate the total amount on one form. Report your total RMD requirement  on that form. Do this on your first 1099 R entry.

Now when you enter your second form 1099 R, mention that none of this was an RMD and complete the form. After you complete both forms, there will be follow-up screens. You will see a screen that asks if you met your total RMD requirement for all your retirement accounts.  Here you will say yes.

Be sure when you enter the RMD amount for the first form, you indicate that this was the required minimum distribution for the year so that it doesn't trigger the penalty tax for the year. Here is the screen I mentioned previously.

[agoodrich23]

Hi Dave, I do have the RMD requirement, but your suggestion does not work as expected. 

On the first form,

I enter an amount from one 1099, which is less than the total RMD

Next screen, I select that all of that amount was an RMD

Next screen, I enter the total RMD amount

Next screen asks if I "took out the entire remaining amount during the correction window."  I entered yes.

Next screen, none to charity

This form is complete, and I move onto the next one

I enter "No, none of this withdrawal is an RMD

Next screen, none to charity

Next screen, I cashed it out (did not move to another IRA or return it to the same IRA)

Next screen, no I didn't put it towards an HSA

Next screen, not a 2023-24 disaster distribution

2nd form is completed.  Several hundred dollars in tax due is displayed.

Next screen, no disaster distribution between 2021-23

Next screen, did not make/track nondeductible contributions to IRA

Next screen, "Let's check if met minimum distribution requirement."  Total RMD displayed is twice what I entered, so I select "No"  I then get the following message:

"We recommend waiting to file your taxes.

We're working on some updates related to required minimum distribution, but your can still work on other parts. . . .Please check back here later on."

Would you be able to let me know if what I describe above is correct and the SW needs update or if I didn't exactly follow your instructions?

[BillM223]

This is one (the only?) issue being worked on for the RMD part of the 1099-R section - "Why am I getting an RMD distribution amount error?" I encourage you to sign up for the updates.

I can't be sure that this is your issue, but it is a project being worked on in the 1099-R area.

[agoodrich23]

I've signed up for updates and installed the 2/13 update when I opened TT.  Was anyone able to confirm that my description of how I applied Dave's instructions is correct?  That I entered everything correctly?  I wasn't sure about the question about the correction window.

[agoodrich23]

Are there any updates on the 1099R bug?  I was told to sign up for updates a couple of weeks ago, which I did, and haven't heard anything (not even an acknowledgment that I signed up).  Is it time for me to think about going elsewhere to finish my taxes?

[DanaB27]

Yes, the RMD section has been updated please go back to your 1099-R entry and review the follow-up questions. At the end of the interview you should be able to select that you took all of your RMD for 2024.

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 includes RMD for other IRA accounts then you included 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" if you met all of your RMD for 2024, otherwise select what is applicable. 

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 includes RMD for other IRA accounts then you included 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" if you met all of your RMD for 2024, otherwise select what is applicable. 

 @agoodrich23