Mom died did not meet RMD but RMD was met by inheritor, why she still hit with penalty?

[nesnet1]

Inheritor took the RMD remaining

[dmertz]

Upon Mom's death, responsibility to complete Mom's year-of-death RMD transferred to the beneficiary(s).  On Mom's tax return, only the amount that Mom actually took was required to be taken by Mom's.  When indicating to TurboTax the amount that Mom was required to take, don't include any portion that became the responsibility  of the beneficiary(s).

[user17747297459]

Similar situation as the OP - family member died having taken out about half of the RMD for 2025 and beneficiaries took out the rest.

Just to be extra clear on your guidance - I should reduce the RMD amount entered on her final return in TT to the amount distributed before she died rather than the full RMD for the year?

I appreciate the advice. TT should advise on this common and simple situation in the data entry guidance.

[dmertz]

"I should reduce the RMD amount entered on her final return in TT to the amount distributed before she died rather than the full RMD for the year?"

Yes.  Entering more than that would cause TurboTax to inappropriately generate Form 5329 to report an excess accumulation.