Can I determine why Turbo Tax thinks I did not take out my RMD?

[rrdotsimz]

RMD = $xx,000 Withdrawal = $xx,000

[dmertz · Accepted solution]

If you completed all of your RMDs, when TurboTax asks during the entry of a particular Form 1099-R how much RMD you were required to take (from this account), enter no more than the gross distribution amount (box 1) from the corresponding account.  The portion of the RMD for this IRA or 403(b) completed with a distribution from a different account must be included with the RMD for the different account when asked the same question during the entry of the Form 1099-R for that different account.

[gmalcolm51]

I did just that, however Turbo Tax is calculating a tax of 25% of the two combined account RMDs required.  I turned 73 this year and withdrew all required from my two accounts.

thanks,

Greg

[DianeW777]

Please clarify you checked that you entered the correct birth date in the Personal Information section of your return. Confirm here and we will try to help.

[gmalcolm51]

Found solution.  Previously it had asked about my military retirement and it tried to treaty it as a retirement account subject to RMD even though I specified it as military retirement,  it then asked about required RMD amount and I had errounesley filled it in.  Once changed to zero all was well.  
Regards,

Greg

[DianeW777]

Thank you for providing this feedback and being a loyal TurboTax customer.

[John_Bissell]

This didn't work for me. I have two IRA accounts and took the required RMD when adding distributions from  both. TT creates a Form 5329 and claims that I owe tax for not taking the full RMD.

[AmyC]

The program does not calculate RMD, it just asks you. Since you took the full amount between all the accounts, just mark that the RMD was taken on each form to avoid the penalty issue.

@John_Bissell 

[sgclark]

I have two IRA's and take distributions from both. However, for one account I take less the the RMD for that acount, and for the other account, I take more than the RMD  for that account, making sure the total distribution is equal to or greater than the sum of the RMD's for both accounts.  I've done it this way for many years with Turbo Tax and never had a problem.

This  year, though, something changed.  The wording in the question regarding information about an RMD says "If xxx's total RMD for 2024 was more that the amount taken out, there might be additional taxes to consider".  It is unclear if they're referring to the total RMD for just the account being entered, or for all accounts.  I initially entered the RMD for the account being entered, and Turbo Tax added a penalty tax.

Entering the amount reported on the 1099-R line 2 for each account for this question, removes the penalty tax and correctly totals the distributions. 

[DCtaxprep]

Please clarify: "...just mark that the RMD was taken on each form...".

All entries on two IRA input screens seem correct, with RMD amounts and withdrawal amounts entered. Yet the F5329 only picks up one account - that which had less than the RMD withdrawn and does not add in the other IRA which had more than enough withdrawn to satisfy the total RMD.

What worksheet adds multiple IRAs/RMDs together?

Does the F5329 need fixing by TT?

[bthe]

TurboTax made a change this year and broke the program. 

Last year was simple:  just enter each 1099-R withdrawal on field 1 for each of the Payers along with the required RMD for each.  TT added them all up and if the withdrawals were more than the RMD' you're done.

This year, after you enter all the 1099-R's you're faced with a Box called "RMD Excess Accumulation Worksheet" that shows the RMD and the distribution followed by the odd question "C Did you withdraw the remaining RMD during the correction window?"  This question assumes you did not withdraw enough and need to pay in the correction window.  If you check "yes" when withdrawal is more than the RMD and No if it is less, it balances out.  However, when you check your entries, you get an error because the correction window is not blank.

I guess manually adding up all the RMD's and putting the total on each 1099-R is a work around.  But makes for pretty sloppy upgrade and creates more work as users try to divine the vague language.  I quit Quicken last year and I think I'll quit Turbortax this year.  They've really deteriorated.  I tried calling and they had not idea what I was talking about.  I can't see where any Turbotax techs are even monitoring this problem.  Pathetic!!

[shlaw47]

The problem with this process is:  it does not match my 1099-Rs and that could trigger an audit over software errors!

[marcyhadden]

I had this with my cx tonite and we deleted the 1099R and re-entered it and it went thru just fine!  Looked up countless articles trying to figure it out and just decided to try and delete and it worked great for us!~  try it!

[bthe]

Sounds like an akward wok around.  How do I get TT to just add up all the the RMD's and distributons?  How Do I get TT tech's attention to fix this bug and stop confusing and wasting theor customers' time?

[bthe]

Your answer is a faulty work around to a bug that shoud be fixed.