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robin033
New Member

I inherited an annuity that was split between my sister and I. We cashed it in and each got 16,000. We both paid taxes. Do we have to put the RMD amount on Turbo Tax?

 
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2 Replies
DavidD66
Expert Alumni

I inherited an annuity that was split between my sister and I. We cashed it in and each got 16,000. We both paid taxes. Do we have to put the RMD amount on Turbo Tax?

No.  If the program asks, just indicate that the entire distribution was an RMD.  The information is not reported on your tax return.  It's just used by the program to calculate an RMD penalty, if applicable.  

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I inherited an annuity that was split between my sister and I. We cashed it in and each got 16,000. We both paid taxes. Do we have to put the RMD amount on Turbo Tax?

The simple answer is to say it was all RMD.  

 

There are some things you can't do with your RMD portion of a withdrawal, like reinvest that money in an IRA (I don't have a full list handy of the things you can't do, but I could look it up if needed.)   If you did not do any of those things, then it will not change your taxes if you say it was all RMD.

 

If you are in a situation where you need the withdrawal to not be all RMD, then post most details and we can consider how to calculate and report it.  It will partly depend on the age of the original owner and if they died in 2025, did they take their own RMD before they died. 

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