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 In total I have withdrawn my full RMD but not the full RMD from one of my three IRAs.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?

[fanfare]

I assume you met your Requirement, OR

you will meet it by April 1 of next year if it is your first RMD year.

There is no Form 5329.

If you say the RMD is greater than the total distribution and it is not your first year

you can request a waiver of penalty by explaining to IRS that you took timely action to resolve the issue.

If you say the RMD is greater than the total distribution and it is your first year, that is a mistake.

@dan_in_MI 

[Cranky]

I just unchecked the RMD boxes for the 2 IRA accounts.  Clearly they have not thought it through.  Unchecking the box seemed a more noble response than putting in the wrong numbers to get the desired results, i.e., no penalty.  

[IwIch2baw]

How do I tell TurboTax that I have satisfied all RMD requirements when the software doesn't sum up RMDs from other accounts?  Do I need to answer Yes to the question that I took out the entire remaining amount during the correction window?

[Holintax]

Thank you, Dan in MI. I, like all the others posting here, have the same problem. I used the bot generated by the help section in TT, posted my question, got no real answer, and did what someone else in this community suggested, click "need more help." I was able to get a phone number and a case number for my individual issue. I had to wait only five minutes, and a TT rep called me. I explained the issue and told her that MANY others are having the same issue. She said she was aware that others are having the issue, took my email address and said she's forwarded the complaint to the technical department and that I should get an answer in a couple of days. I won't hold my breath. 

I do suggest that everyone having this problem call TT to complain. The number I was given was [phone number removed].

[peterholmes9]

I have contacted the live help people 3 times. Yes they hae been friendly and tried to be helpful, but were unable to consider that TT might have a problem. My second contact, after more than an hour going back and forth said that I needed to talk with a specialist. She made it seem like she had a dialog with someone else and then told me that they would call me back. Never got a call back. I went back for another try and again, spending another hour going over my inputs, was told that I had to pay an excess due to the difference in one of my distribution lines. My response made her aware of my frustration and she too conacted a technical specialist and said she had arranged for the specialist to call me within the next 24-48 hours. That was 4 days ago and I've had no contact. FYI: after reviewing many posts to this board, I found one that made some sense. I went back and this time, for both my distributions I said that they were for the entire RMD (even though one was surely not), and I put the distributed amount for both the taxable amount and the RMD amount. This finally got me my 1040 without the form 5329.

[Commentsrarely]

I have just installed the latest update. It now includes a question about the total RMD from. So that might solve some problems.

However before getting the update, I was trying to get the RMD amount to calculate correctly by completing the waiver request. Now I can't revisit and remove the waver.

My  schedule 2 is still showing the penalty. Actually it's the penalty that it was showing before I requested.

So I don't know whether the upload is working or not. Hasn't worked for me.

[Commentsrarely]

I removed my 1009-R input that I put in before I got the update. After the update was installed I reentered the 1099-R's and all of the RMD information. The updated version is calculating a penalty and assuming that I have requested a waiver.

I have a correction to my previous post. The penalty calculation was the same before and after installing the update.

[wja]

I phone contacted TT on 2/9/24 about the multiple IRA issue of which I am also having a problem. If there is a shortfall on one RMD for one IRA account but you have taken excessive distributions from the remaining IRA accounts, TT will simply refuses to aggregate all the distributions and imposes a penalty tax on the account with the shortfall.

I was able to have a conversation about the issue with a very helpful gentleman in another department but took the time to check the issue and said that yes indeed it is a known problem and that it is being worked on. Kudos to Allen for his help. The below link addresses it.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-income/getting-rmd-distributi...

[peterholmes9]

Full disclosure: a tax expert did contact me today. He saw and acknowledged the issue. I assume that he will send this info up to a techy.

[dan_in_MI]

It is great news that someone at TT has acknowledged the issue, and better yet will act on it somehow. I guess eventually if people call in enough eventually you will get through to someone who knows how to deal with it. I think it is important that as many people as possible call in to highlight this issue. 

Turbo Tax phone support with automatic case assignment-

Open Turbo tax>Help on top ribbon>Turbo Tax Help Center>Ask the bot your question

Ignore the bot answer and scroll down to and click  "Get Even More Help".

State your question again, and select "Call Us"

A phone number is then supplied with a case number. When I called this way I got very good support and the history was in my account when I called back later. Be sure to ask your agent to enter the call record.

[jim221]

I'm having the exact problem.  TT says they are working on it, but I don't want to wait until April to have it fixed.

I have two IRA's, I'm taking less then the required on one IRA and more then required on the second IRA.  The total is more then what the total is required for the total RMD for the year.

[peterholmes9]

You can get around this by entering the amount distributed for both the 1099 amt and the RMD amount. Say that both distributions are full RMD amt even though it’s not true. That did it for me.

[dan_in_MI]

Just to clarify, for this workaround the amount to enter into both RMD and RMD distribution fields is the amount for the RMD, not the total distribution from the account. Roth conversions, account transfers, and QCDs are included in the total distribution.  If you have not met the required distribution you would need to adjust accordingly.

I'm not sure anyone has tested this for all cases, so make sure all your other distributions are properly allocated. It is also possible Turbo Tax will not allow some situations with this work around.

Not to nit pic, but there are many suggestions to use Box 1 of the 1099r, which is not correct in many cases.

[wja]

I posted earlier about the IRA/RMD problem (Tax on an IRA account taking less than the RMD) that everyone is having an issue with am being one not to give up on finding a quick solution I reached out again to TT via their phone help.  I was promptly connected to a gentleman that was able to work the issue with me in real time by using a screen share capability that allowed him to see my tax tax return both in the forms context as well as  using the step entry method.  Together we we did a  step by step  analysis of the IRA/RMD distribution problem. He was quick to realize there is a problem. He said he would elevate is issue to the appropriate people.

 In the meantime he came up with what appears to be a good work around.  Form 5329 deals with this issue.  I am not going to give further advise on how to manage this form but notice lines 52a and 53a.

[shlaw47]

The problem with the workarounds:  you are required to swear to your return under penalty of perjury.  TurboTax wants us to swear to figures that do not match the 1099-R, which is also submitted to the Government.