Aggregated RMD

[joek0531]

TurboTax gives me an error when I aggregate my RMD's. It wants RMD's to be taken by each 1099-R, but gives an error for the accounts that are under reported even though the total is correct. How should this be reported in the RMD section of the 1099-R? Should I answer yes to taking the remaining RMD during the correction window even though it doesn't really apply?

[VolvoGirl]

For the RMD questions just enter the amount that’s on that one 1099R box 1 not the total RMD.  It’s asking for each 1099R this year.   Even if you took less from that account.  

[Baddadjohn]

I have similar issues with aggregation of IRA RMDs. TurboTax seems to treat each account separately to determine if RMD has been met for that account and ignores the aggregated RMD amount of all IRA accounts. As a result it concludes that a penalty is due for any account that does not list withdrawals that meets or exceed the individual account RMD amount. In my case I have IRA annuities such that my total IRA withdrawals met the aggregated RMD for all IRA accounts even though the withdrawals from one IRA account was less than its individual RMD amount. This is the offset concept put in place by the Secure Act 2.0 that went into effect January 1, 2023. TurboTax needs to fix this flaw. 

[PatriciaV]

Please revisit the Retirement section of TurboTax and work through the interview screens. An update to this section was made recently that added a question about the RMD requirement. Once you answer this question, the missing RMDs should be resolved.

TurboTax Online updates automatically when you close and reopen your browser. If you're using TurboTax for Desktop (any version), agree to the updates when you restart the program.

@Baddadjohn 

@joek0531 

[quig]

Thanks Patricia - but I still am confounded by an IRA for which I took  zero distribution because I aggregated it into another one I preferred to take it out of.  As a result, the firm of the first IRA did not issue a 1099R, so I have nothing to use for TT to record RMD info into.

[DanaB27]

Please follow these steps in TurboTax Online:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. Continue until "How much of the $XXXXX was a RMD?" screen and select "Only part of this distribution was a RMD" and enter the amount of RMD /or select "The entire distribution was an RMD" (if this distribution includes RMD for other IRA accounts then you included the amount here)
5. Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
6. On the "Review your 1099-R info" screen click "Continue"
7. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "An IRA..."
8. On the "Total RMD for all other IRAs" screen enter the RMD from your other IRAs (where you didn't take a distribution from).

In TurboTax Desktop:

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 "Some of this distribution…" and enter the RMD amount / or select "The entire distribution applied…"  (if this distribution includes RMD for other IRA accounts then you included the amount here)
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 "An IRA..."
7. On the "Total RMD for all other IRAs" screen enter the RMD from your other IRAs (where you didn't take a distribution from).

You are not required to file Form 5329 if you met all of your RMD for 2024. TurboTax will enter the information in the "Additional Retirement Account Smartsheet" to check that you met the RMD. You can see this in TurboTax Desktop when you switch to form mode and look at Form 5329 but this will not be sent to the IRS. 

Please see Can an account owner just take a RMD from one account for additional information.

@quig

[Baddadjohn]

Thanks for the detailed explanation. Looks like TurboTax has fixed the problem.