Minimum Required Distribution

Please clarify your question.

 

• What does your wife's age have to do with your IRA of 401-K RMD distribution?

Please contact us again to provide some additional details. 

 

 

 

Turbo Tax doesn't know what your RMD should be at all.  You have to enter it.  What question is Turbo Tax asking you?  Can't you just pick all of it is the RMD?  Enter the amount from box 1 for the RMD.  

It is saying we owe over $6,000 because enough was not paid. The company that has the IRA has double checked the figures and they are correct.

There are two RMD follow-up questions after you enter the Form 1099-R. The first one asks about the RMD amount for this account and the second one asks about how much of the distribution was applied towards the RMD. You can just select all of it was applied towards the RMD.

 

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 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 
5. On the "Your 1099-R Entries" screen click "Continue"
6. 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. 

That is how we answered number 4 and 6. 

You still are showing a penalty on Form 5329? Are you using TurboTax Desktop or TurboTax Online?

 

It would be helpful to have a TurboTax ".tax2024" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Online: 

 

1. From the left menu select Tax Tools. 
2. Then select Tools below Tax Tools. 
3. A window will pop up which says Tools Center.  
4. On this screen, select Share my file with Agent. 
5. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
6. Reply to this thread with your Token number and add @DanaB27 . This will allow us to open a copy of your return without seeing any personal information.  

 

The instructions for TurboTax Download: 

 

1. On your menu bar at the very top, click "Online"
2. Select "Send Tax File to Agent"  
3. Click "Send"
4. The pop-up will have a token number
5. Reply to this thread with your Token number and add @DanaB27 . This will allow us to open a copy of your return without seeing any personal information.  

 

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

 

Your distribution is less

We did choose all RMD for the question. It is saying we are $6,589 short w/a penalty of $1,647??? 

I was trying to send a diagnostic file, but I am unable to locate the tax tools/tool center. It is not on the left side of the screen. There are tools at the top but it does not include Tax Tools.

@larrysmith The answer was for someone using the TurboTax online editions.

You are using the TurboTax desktop editions.

Click on Online and click on Send tax file to agent