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

[bthe]

Please recognize that this is bug in the program that is wasting a lot of uesers time.  This needs to be fixed, not explained away.

[bthe]

Why is it none of the experts can recognize a bug that needs to be fixed instead of trying explaind it way or come up with work arounds?

[VolvoGirl]

They should know that everyone is complaining.  We've been telling them about it.  Turbo Tax changed this year. When it asks about the RMD it is only asking for that one 1099R. You need to enter the amount in box 1 on that single 1099R for the RMD, not the total RMD for all. Even if they would add up to more. 

[rowandh]

Just had this issue today and like a number of you, TurboTax decided I might owe a penalty.  I filled out the waiver, but I was uncomfortable with that as a solution.

Situation - two IRAs and total RMD was what was required.  But I took more out of one IRA and less out of another.  IRS Pub 590-B, page 12 specifically allows this.

Fix - when TurboTax asks for the RMD in the account where you took out less than what your brokerage firm stated the RMD should be, DO NOT enter what is on your year-end statement, enter the amount of the RMD taken as the required RMD.  On the IRA where you took out more, do the same - enter the amount you actually took and not what your IRA statement showed.

Caveat - supposes that all RMDs taken do in fact total to at least the RMDs required.

[Beetsme]

I agree. I am not using TT next year because of this flagrant error and I have used it since the mid 90s.  I think I am just going to enter 0 on each 1099-R when it asks what the required RMD is.  If you are sure you took enough out on a combined basis (and if none of your -R accounts are 403(b) annuities) you should be OK.  Let the IRS figure the RMD since TT hasn't gone to the trouble of providing a RMD summary form OR of asking if any of the accounts in question are 403(b) accounts.

[LawrenceC]

I have an inherited RMD which has three mutual funds in one account. So I have theee 1099Rs. TT wants me to pay a penalty because I have to enter RMD for all three forms. 

what I gather is that I just enter the distribution as the RMD for the two accounts I took out less that entire RMD and for the one which I took out more, enter the actual RMD?

[GLD777]

I just had my 4th telecon with TT support on this. This time they read me the official INTUIT policy guidance on this issue, and it clearly states that RMDs for multiple accounts must be taken from each account rather than satisfied in total.  It turns out they are half right: this is indeed the requirement for 401k and 457 b accounts, but it is NOT true for IRA and 403b account.  Currently the TT2024 software does not differentiate between these account types. The agent finally realized that there are two different cases and understands that their software in incorrectly processing the IRA/403b accounts, and she agreed to escalate the problem. I can't believe there aren't many other reports on this, but hopefully they will get it fixed before the filing deadline.

[dmertz]

This is by far the issue that I mentioned the most by people on this forum this year.  It's always possible to get TurboTax to produce an appropriate result on your tax return by manipulating the RMD amounts entered, but TurboTax makes it more difficult rather than making it easier.  It's the result of the developers adding the the changes to Form 5329 required by the tax-code changes in the SECURE 2.0 Act without the developers having any real understanding of the RMD regulations.

[rowandh]

Your 1099-R only shows the amount taken out, not what the RMD was.  Enter your box 1 amount in TurboTax and when asked if all or part was a RMD select YES.  Then when asked how much was a RMD  elect ALL.  If you tell TurboTax that everything shown on the 1099-R was an RMD, you will not get the form to calculate a penalty or the need for a waiver.  Just make sure that the amounts you did take out was in fact at least the RMD to be taken

[rowandh]

No it won't.  Enter box 1 of the 1099-R into TurboTax for each 1099-R you received.  when asked was all or part a RMD select yes.  Then, when asked how much was a RMD, select All.  Turbo Tax will not then bring up the form concerning possible penalties.  TurboTax does not know how much of a RMD you should be taking - when you select All, it will accept that as you having met your RMD.  Just make sure you did take out the RMD in total.

[rowandh]

Would ne nice if a work around was not required but it is not awkward at all.

[rowandh]

Enter Box 1 from each 1099-R into TurboTax.  When asked was all or part of the amount a RMD, select YES.  when asked how much of box 1 was a RMD, select ALL.  TurboTax will not think you owe a penalty.

[sgclark]

TurboTax may not know what your RMD is, but it does ask you what your RMD is for the 1099R account you are entering.  If you put it the actual RMD and it is more than the distribution amount, TurboTax decides you owe a penalty and offers to take you to the waiver form, even though I took out more than enough from my other IRA to satisfy the total RMD requirement.  The only way I can figure to get TurboTax to handle this "correctly", i.e. no penalty, is to specify the actual distribution from my second IRA as the total RMD for that account.  TurboTax does not recognize that I took an amount from my other IRA to satisfy the total RMD for both accounts.  In past years, TurboTax handled this situation correctly.  It would be nice if the developers would indicate if this is going to be fixed soon, so we can input the correct information, or if we'll have to file the workarounds we've discovered.

[lhlynn]

This doesn't work for me. I have an IRA and a small inherited IRA.  I took the required amount from each and there is no combination of answers that works - TT always thinks I have under withdrawn.

[fanfare]

@lhlynn 

You have to tell TurboTax that your distribution was the RMD, but separately for your inherited IRA,

Inherited IRAs must be treated separately.