Incomplete 2023 RMD resulting in Excess Accumulation in IRA

[Barry34]

I'm using the Windows Desktop for Home and Business.

My spouse has an IRA that allows for direct withdrawals from her account. Additionally, we are of age where QCDs can be used to fulfill RMD.

As stated in the Subject line, in 2023 we came up short of the RMD when some gifts sent in mid-December 2023 to 501 C (33) organizations were delayed in the mail and not cashed before the end of the year.  However all checks were cashed by 17 January 2024, and the IRA administrator accepted them as part of a 2024 RMD because they paid them in 2024.

I did not find an acceptable way in TT to accommodate this except to use the Form 5329 and manually force the issue.  TT had no community ideas that I could find and so I did as suggested from online searches: I requested a waiver of the penalty due to a reasonable error and submitted the form with no penalty payments. So far so good. Tax compliant Reports and calls to the IRS said they consideed us compliant and needed nothing.

Now in 2024 I need to "correct for the Excess Accumulations resident in the IRA. We took 2024 withdrawals, enough to remove the excess accumulation and then some and completely took what was computed as the RMD.

The step by step is not helping. I pulled the Form 5329 again and adjusted the 1099-R for the specific account under QCDs applied, RMD Distribution section (showing the excess withdrawals paid for more than the RMD), and then entered into the RMD EXCESS Accumulation Worksheet to enter a) the Required RMD amount followed by b) the Amount distributed in 2024.  Question C then asks "Did you withdraw the remaining RMD during the correction window?  I answer Yes ( because I am trying to get TT to understand I made a correction) and then d). Check the IRA box .

Unfortunately, TT keeps claiming I have an error. It wants no entry for the Correction Window and wants me to remove it. I've done that and found that I get no chance to explain what and why I am doing what I do.

I believe I tried to Override this but it also does not accept and override.

Thoughts?

[DanaB27]

You do not report the correction of RDM for 2023 on the 2024 Form 5329. All you need to do is enter the 2024 Form 1099-R for the distribution.

Please make sure you only enter in the follow-up RMD question the RMD amount for 2024:

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R” and enter your 1099-R
3. On the "Required Minimum Distribution" screen enter RMD for 2024 for this account 
4. On the "How much of This Distribution Applied to your December 31, 2024 RMD" select "The entire distribution applied…"  / or select "Some of this distribution…" and enter the RMD amount applied for 2024 (if this distribution includes RMD for other IRA accounts then you included the amount here)
5. On the "Your 1099-R Entries" screen click "Continue"
6. Answer the "Transfer to Charity Screen"
7. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024.