If an inherited IRA was distributed on 03-29-2024 why do I need to know the RMD amount for December 31, 2024?

[Carolprim5]

Why do I need an IRA RMD amount when the IRA was already distributed?

[VolvoGirl]

Did you withdraw the whole amount?   For the RMD question just enter the same amount as in box 1 on the 1099R.    Are you sure it wants the RMD amount for Dec  31, 2024?  The RMD is based on the value at the end of the year before like Dec 31, 2023.  

[fanfare]

The RMD you must take in 2024 does not change over the course of the year.

The same goes for 2025.

TurboTax 2024 is probably asking if you had other IRA accounts besides the one your entered 1099-R is reporting, which could mean your total RMD is greater..

With regard to an Inherited IRA, that's not common.

@Carolprim5 

[Opus 17]

You had an RMD that you must take sometime during 2024, before 12/31/24.  That RMD is based on the value in the account as of 12/31/23, and a formula based on your life expectancy.  (But note that the formula for an inherited IRA is different than for your own IRA.)

So, if you withdrew all the funds in the IRA as of 3/29/24, you must consider that part of the withdrawn funds were the RMD for 2024.  Turbotax wants to know this because there are certain things you can't do with the RMD portion of the withdrawal, such as contribute them to a new IRA in your own name.  This won't be an issue as long as you had earnings from work of more than $8000 for 2024, so that any new IRA contributions came from work instead of from the RMD.  

You can answer "all of the funds were the RMD" and that won't change your tax return as long as your earnings from work are more than your new IRA contribution, if any.  Or you can answer with the correct amount (maybe the whole withdrawal was $10,000 and the RMD portion was $1500, so answer that way.)

Also, remember that your RMD from an inherited IRA is separate from, and calculated separately from, the RMD from any IRAs in your own name (if you are of the age where RMDs are required.)

[Opus 17]

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@fanfare wrote:

The RMD you must take in 2024 does not change over the course of the year.

The same goes for 2025.

TurboTax 2024 is probably asking if you had other IRA accounts besides the one your entered 1099-R is reporting, which could mean your total RMD is greater..

With regard to an Inherited IRA, that's not common.

@Carolprim5 

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The RMD on an inherited IRA is calculated separately from the RMD on any IRAs owned in the taxpayer's own name.  Withdrawing extra from the inherited IRA does not satisfy the RMD requirement for any IRAs in the owner's own name (if they are of that age). 

[fanfare]

If your benefactor had IRA accounts at more than one custodian, you could inherit more than one IRA account from the same owner.

[fanfare]

I currently have five IRA accounts and the same benefiaries are listed on all of them.

Why? For historical reasons.

If I don't consolidate, that task will fall to the beneficiaries.