I have multiple IRAs. In total I have withdrawn my full RMD but not the full RMD from one of my three IRAs. Why is TurboTax calculating a penalty?

[wja]

DelGman, Thank you for the information

[DawnC]

We are modifying the RMD section of TurboTax.   You can sign up for notifications from the link below.

Why am I getting an RMD distribution amount error?  

@dan_in_MI 

[craigmart]

There is another thread discussing the same problem here:

https://ttlc.intuit.com/community/retirement/discussion/2024-turbotax-deluxe-not-recognizing-2-separ...

At the end of the thread an employee has responded indicating they are working on the problem.  He has provided a signup link that will allow us to be notified when the fix is in.  I encourage everyone to sign up.

[Puli3339]

I have exactly the issue.

I am having a very hard time to find help from TurboTax. This a BIG error by TurboTax, and I am surprised that has not been fixed in the Updates. 

I would like to know the how to enter my data such that TurboTax will total my withdraws and compare with mt total RMDs. 

[VolvoGirl]

Until they fix it (if they do)….

When it asks about the RMD it is only asking for that one 1099R you are entering.  On each 1099R you need to say Yes it was the RMD and only enter the amount from box 1 on that single 1099R for the RMD, not the total RMD for all and even if it is more or less than the total.

[dan_in_MI]

This is terrible advice.

It does not recognize that the software is flawed, and if I do what you suggest Turbo Tax will calculate that I owe many thousands of dollars in penalties, which is not correct.

Are you at Turbo Tax employee?

Is this the position of Turbo Tax?

You are suggesting that tax prep errors that result in large undeserved penalties is better than tax prep errors that result in essentially a correct result.

An "employee" posted saying the RMD section is getting updated and provided a way to get notification when it is done. I suggest all affected find that post and sign up ASAP.

[VolvoGirl]

No I don’t work for them.   What I posted is how to enter it so you DON’T get the excess accumulation penalty.  You say that THAT 1099R  is the full RMD and enter the amount from box 1.  And do that FOR EACH 1099R.   

[tat000]

@dan_in_MI  ....  Thank you for your efforts on this RMD topic. 

There remains one other issue -- when TT issues a fix, how much of my efforts in this tool need to be unraveled?  If I simply delete the 1009Rs and reload them, are there switches in the software that do not get reset, that will persist and cause other errors?  In past years, I've found that some data is persistent, even when the source has been removed.  Right now, I'm hoping to avoid a complete start over.  Thoughts on this would be appreciated.

[dan_in_MI]

I am not a tax expert and I am not giving advice. This is what I am going to do.

1)Wait until Turbo Tax fixes their software before I file. OR

2)If I have to file before they fix it, I will aggregate all my 1099Rs into one to complete my return and use the resulting tax due to file for an extension. I will update after Turbo Tax fixes their software and send in the return later.

This way I will not pay an undeserved penalty, and I will not have to file a known broken return.

Everyone has to decide for themselves how to proceed.

[dan_in_MI]

Sad state of affairs, isn't it.

Yup, you nailed it. 😂

[dan_in_MI]

Sadly there is no way to achieve what you request. Turbo Tax is busted.

One person suggested aggregating all your 1099rs into one. In this way the RMDs and RMD distributions get aggregated. In this fashion you can at least find out what the result should be.

It probably is not a good idea to file this way, since no one knows how it might interact with the IRS.

If TT doesn't fix it in time I am going to use this method to request and extension, then file after the fix.

[Pottomania]

dan_in_MI: says, "I will aggregate all my 1099Rs into one"

 Is that legal?  Different payers have different identification numbers.

[dan_in_MI]

I am not a lawyer, nor a tax expert.

If you look at my post I said it could be aggregated to figure out what your taxes look like. And I also said it was probably not a good idea to file it that way.

As long as it isn't filed you can put anything you want in there. Something not filed is not illegal.

If you want to file it that way that is up to you.

I plan to request an extension for as long as it takes for Turbo Tax to fix it. In order to send in the extension it is very beneficial to know the tax liability so it can be paid with the extension and avoid a penalty later. This method will provide that number as well as my drunken guess.

If you want everything to be pure, they get rid of Turbo Tax and buy something that actually works.

Sorry, my frustration is showing.

[grifftax17]

I have the same issue as dbiamondmd, peterholmes, and dan_in_MI.  I have not seen a reasonable answer or solution to this problem.  In the only response from TT (MinhT1, 3 weeks ago) it is stated:  " In your case, there is no penalty. You can answer in TurboTax that you have satisfied all RMD requirements."  

How can we "answer in Turbo Tax that " we "have satisfied all RMD requirements."??  I had the exact same situation last year (two accounts, one overpaying and the other underpaying but totally covering the total RMD requirement) and Turbo Tax 2023 handled it without issue.  What has changed??  What can we do??

[DawnC]

We are currently modifying the RMD section of TurboTax to remove any confusion and to ensure your distributions are reported correctly.   You can sign up for notifications on the progress, from the link below.

Why am I getting an RMD distribution amount error?  

@grifftax17