If I enter 1099-R for inherited IRA and the RMD portion of distribution, why does TurboTax believe there is a difference requiring correction?

[mike-mcsherry]

The RMD amount is a portion of the total distribution, but TurboTax thinks the difference is the exact same RMD amount. I'm asked whether the remaining amount will be taken out during the correction window, but I don't think there IS a correction to be made.

[RachelW33]

There was recently a program update in the RMD section of TurboTax that should have resolved this issue.  

Please review your 1099-R entries in TurboTax and complete all of the follow-up interview questions.  Once you are done updating your 1099-R entries, click Continue and answer those follow-up questions.  

If you’re still experiencing an issue, please post here so that we can assist you further.

[mike-mcsherry]

Unfortunately I'm still seeing this problem.  Here's the sequence of screens/info I went through, with dummy amounts to illustrate.

NOTE: It seems that TT is possibly tripped up comparing rounded versus actual numbers, possibly doing a string compare instead of an actual number?  I tried entering the rounded number as the RMD to start, but that didn't seem to work either.  See notes below in green on what I'm seeing.

Hopefully this helps isolate the issue:

First few screens and responses...

(x) Someone else who passed away Name: XXXX   Year person passed away: 2020
(x) No, you didn't have any nondeductible IRA contributions

(x) XXXX was born before January 1, 1951

How much of the $XXXXX.XX was an RMD?

(x) Only part of this distribution was an RMD
RMD amount: $1234.56  <-- If I round this value, it appears to be recorded as $1235.00 when navigating back

Let's get more information about your Required Minimum Distribution (RMD)

From what you shared earlier, you received $1234.56. If your total RMD... Could you tell us what the required minimum distribution for your account was in 2024?

Required Minimum Distribution Amount $1234.56  <--- This is what I entered, but TT records $1235 (rounded, w/ no decimal places) if I navigate back to this screen...    I think it's trying a comparison and finding "1235" is not equal to "1234.56", which then leads me to the next screen (which it should not).

Just a few more details about your RMD
It looks like the difference... for this account is $1235. This amount could be taxed...
remaining $1235 during the correction window.

Did you take out the remaining $1235 during the correction window?

[VolvoGirl]

I would delete that 1099R and enter it again manually.  That usually fixes it.  That should reset the answers to the questions.  

[mike-mcsherry]

Thanks for the suggestion.  Yes, deleting the 1099-R and going through it again seems to have done the trick.

[dcl766]

I realize this was resolved for the OP, but I also had an inherited IRA this year, and none of the questions that he’s indicated after he says “Hopefully this helps isolate the issue:” are showing up when I go to provide the information on the 1099R’s.

I’m just wondering why.

The only screen I am getting that is remotely similar is this one:

Let's get more information about your Required Minimum Distribution (RMD).

We still need some required info.

If your FIDELITY INVESTMENTS INSTITUTIONAL OPERATIONS CO. account was subject to a Required Minimum Distribution (RMD), we need to know the amount that was required to be distributed by December 31, 2024 from this FIDELITY INVESTMENTS INSTITUTIONAL

OPERATIONS CO. account.

Do not include RMDs which are due on April 1. RMDs for the first year you're required to take a distribution are generally due on April 1.

RMD due by Dec. 31, 2024

$

Needs info

Note: Do not include the RMD for other retirement accounts you may have. RMDs for other accounts should be entered separately.

[KrisD15]

Please clarify, did you only receive one 1099-R

What is the code in Box 7?

Did the original owner pass in 2024 and if yes, is this 1099-R reporting their RMD for 2024?

Are you the spouse of the original owner? 

[moi_2025]

Re: Husband's 403(b) that became inherited IRA for Spouse in mid-2024

My father passed away mid-2024. By the time my mother inherited his 403(b) he had already received 75% of the total RMD he was supposed to take out that year in his name. The financial institution eventually sent the remaining 25% to my mother (in her name) before the end of 2024. Once 2025 rolled around my mother received two 1099-Rs for the same 403(b): 1) One under my Dad's name and 2) another under her name.

Let's say the total RMD that was needed to be taken out of that 403(b) by Dec 31, 2024 was equal to $560.

In TurboTax, at the RMD section for each of their 1099-Rs where it asks the question:

RMD Due by Dec. 31, 2024:  [          ]

Are we supposed to enter $420 for my Dad's entry and $140 for my mother's entry? 

Edit:

Forgot to mention this will be their last filing as Married - Filing Jointly, if that makes any difference.

[MarilynG1]

Yes, you could enter the RMD amounts as you suggested, since you know the amounts.  

Here's more info on What is RMD?

@moi_2025