IRA RMD

[adonn]

This is my first year to report an RMD.  My financial advisor provided me the 2019 RMD from 4 different IRA accounts and the total 2019 distributions taken from the 4 IRA accounts.  The total withdrawn from the 4 accounts is way more than the RMD.  I'm not sure how to answer the TurboTax question on "how much received on a specific IRA account applies to the RMD".  Should I say all of it or should I take the total 2019 RMD for all 4 accounts and enter them on one of the 4 accounts?  I know that the RMD doesn't have to apply to a specific account - only the total RMD has to be taken from any combination of your IRAs.  

An associated question - last year in my 2018 tax forms my financial advisor provided forms 5498 that gave me RMDs for the 2019 tax year - they are close but do not match exactly the total RMD that was reported to me by the financial advisor on my 2019 account summary (not an IRS statement) - they are off by a few dollars.  Which should I believe or will the IRS believe was my real RMD for 2019?  Or should I round up and give a ball park number above the RMD to insure that I don't get any sort of penalty.  I did check the TurboTax box that says my RMD was satisfied, but I don't know what the IRS looks at to make sure that is the case.  Just trying to be cautious and get it right.

Al  Donn

[MinhT1 · Accepted solution]

If you are certain that your total distributions from your IRAs are more than your total RMD, you can choose one distribution to be the RMD and answer in TurboTax that your RMD requirement is satisfied.

The 5498 you received in 2018 is for information only. So it does not matter that the projected RMDs were a few dollars off. 

[adonn]

Excellent!  Thank you so much for the concise and quick reply!  Al

[inspectorhemo]

Where do I enter the information for a RMD on my tax form.  Total amount of RMD, amount of federal and state withholding and total mount distributed?

[GiseleD]

Was this reported to you on a 1099-R? If so, here's how to enter it:

1. Open (continue) return if you don't already have it open.
2. Inside TurboTax, search for 1099-R and select the Jump to link in the search results.
3. Answer Yes on the Your 1099-R screen, then select Continue.
   • If you land on the Your 1099-R Entries screen instead, select Add Another 1099-R.
4. Select how you want to enter your 1099-R (type it in yourself) and then follow the instructions. You can add up to 20 1099-Rs.

@inspectorhemo

[mcginnis1]

Had to take more money out of IRA in 2020 to meet RMD distribution requirement for 2019. This makes the 1099-R  incorrect. How do I report this extra distribution? Thank you

[BillM223]

@mcginnis1

Was the first 1099-R correct in terms of describing your distribution? (i.e., were the numbers correct)

It sounds like the first distribution was technically correct, just not sufficient for your RMD. Is that right?

And did you get a second 1099-R for the second distribution? After you enter the 1099-R, you will be asked if this 1099-R was part or all of your RMD. Enter how much RMD you allocated to each 1099-R (it doesn't matter how you split it). Of course, if one 1099-R is larger than your RMD, then you can just say "all" when TurboTax asks about the all or part of the RMD.

If, on the other hand, you didn't get a 1099-R for the second distribution, then you need to contact the IRA custodian and ask where it is.

[macuser_22]

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@mcginnis1 wrote:

Had to take more money out of IRA in 2020 to meet RMD distribution requirement for 2019. This makes the 1099-R  incorrect. How do I report this extra distribution? Thank you

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It does not make the 1099-R incorrect.  Any money taken in 2020 can only be reported in 2021 in a 2020 1099-R that should have both the remainder of the missed RMD plus the 2020 RMD.

When you answer the RMD question after the 1099-R summary screen you must say that all of the 2019 RMD was NOT taken.  The enter the amount that the RMD should have been and the actual amount taken.  That will produce a 5329 form with a penalty waiver request, that is always granted if the missed RMD was taken in 2020.