Inherited IRA from parent with partial RMD taken. Remaining RMD needs to be split but asking for total RMD???

[donnanewt1]

Father passed away and had taken 2/3 RMD for year. 3 sons inherited IRA and remaining distribution was taken by 2 of 3. Turbo Tax is asking about the Full RMD needed for the year and it appears we are being taxed for the full RMD and not the partial that is attributed to us. Should I put the Full RMD amount due, including what has been taken or 1/3 of remaining RMD amount?

[ReneV4]

If your father completed 2/3 of his RMD prior to passing away, the remaining 1/3 becomes the responsibility of the beneficiaries. Because the IRA was split three ways, the remaining amount if divided among the three sons. 

Note: Your father should also have a 1099-R for his 2/3 share, which must be reported on his final tax return. You and your brothers should each receive a separate 1099-R in your own names and social security numbers for the portions you withdrew.

If you are one of the two brothers who took your distribution, follow these steps in TurboTax to ensure you aren't taxed on your father's or brothers' shares:

1. Return to your 1099-R entry by clicking Review to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R) in the Federal Wages & Income
2. Click on the pencil to the right of the 1099-R
3. Click Continue through the entries you've made
4. Note: Box 7 should have Code 4 for an inherited IRA, as well as the IRA/SEP/SIMPLE box checked
5. Ensure you selected, I inherited this IRA, Continue
6. Enter the information about from whom it was inherited, Continue
7. Answer the, "Did you have nondeductible contributions for this IRA?", typically "No", Continue
8. Year when the person from whom you inherited IRA was born, Continue
9. Next, "Let's get more information about your RMD", enter only the distribution amount on your Form 1099-R, Continue
10. Next, select, The entire distribution applied to the December 31, 2025 RMD, Continue
11. Next, in the Review your 1099-R summary, Continue (not the pencil)
12. Continue answering the questions
13. Next, when you see "Let's go over any required minimum distributions (RMD), select Continue (not the pencil)

Since your father was already taking RMDs, you must generally empty this inherited account by the end of the 10th year following the year of his death. Because he had already started RMDs, you have also be required to take annual distributions during years 1-9.

[dmertz]

The remaining portion of the year-of-death can be divided between the beneficiaries any way they see fit,  Yo indicate that 2 of the 3 beneficiaries completed the remainder of the year-of death RMD, so the amount that each was required to take was the amount actually taken by the particular beneficiary, with the beneficiary who took no distribution not being required to take any amount.  Even if the two beneficiaries who took more than their respective share of the year-of-death RMD, there is no harm in indicating that the entire distribution was RMD because a non-spouse beneficiary is not permitted to roll over any portion of a distribution anyway,

For example, if the portion of the year-of-death RMD to be completed by the beneficiaries was $5,000, one beneficiary took a distribution of $6,000 and another beneficiary took a distribution of $1,000, each of those beneficiaries could simply say that the amount that was required to be distributed was the amount they individually received and that the amount they received was all RMD.  The third beneficiary can say that no RMD was required by the third beneficiary (because the other two beneficiaries satisfied the requirement).  Answering in these ways will prevent TurboTax from preparing Form 5329 Par IX.