My wife received a total distribution from an inherited IRA after her dad passed away. I entered it as a total distribution with code 4 for death as on the 1099R. Turbo Tax asks me what portion of the distribution was a RMD? The amount was for $9491.57. Since it's a total cash out, how do I answer the RMD question? If I enter the full amount, will TT be looking for another RMD next year? He passed away in December of 2023 and had taken his required RMD's for 2023. The account was split 3 ways between her and her 2 sisters. My wife received her share in 2024 and it was deposited into a bank account and not rolled over into an IRA. The account balance is now zero.
You can enter the total amount as the required minimum distribution (RMD) if you have taken the proper RMD for the year. The question is asked to determine if there is a penalty for not withdrawing the required RMD, it won't show on the tax return. It won't be an issue next year as you won't have another distribution to account for from the same plan.