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

[rowandh]

After entering the distribution from your 1099-R, answer the following questions.  Was all or part of your distribution a RMD -- YES.  Then How much of the distribution was a RMD -- ALL.  Do this for each IRA you got a 1099-R for, and Turbo Tax will not think you owe a penalty.

Just make sure your total distributions were equal to or greater than your RMD.

[JudithAR]

Deleting and re-entering 1099R worked for me too!

[VolvoGirl]

EVERYONE:  Be sure to update your program today Feb 20, 2025.  There was an update that fixed the RMD problem.  

[GLD777]

Verified - they've rewritten the RMD calculations and the problem is fixed.  Thanks for the notice.

[Beetsme]

DITTO!  Verified.  It now takes other RMD withdrawals into account. 

Thanks for letting us know @VolvoGirl.

[sgclark]

Yep, fix seems to have corrected the RMD issue I had.  The error check did flag the 1099-R for my pension, and asked for an RMD amount for it;  I entered 0 and made it happy.  Everything looks good!

[EJC CPA]

This problem should never have happened in the first place. Upon updating the program for 2024 tax returns, Intuit should have "road tested" the software thoroughly enough to ensure it made the right RMD calculations. This calculation was not "rocket science"! Instead, this error created a lot of time, trouble and confusion for TT users. As a retired CPA and a decades long user of TT (for my personal returns) I know how difficult and confusing tax compliance is, but I found Intuit's error in this instance and very slow response to fixing it to be very disappointing. This software is supposed to make tax compliance easier and more efficient not the opposite!  

[lesmikesell]

I just updated today (2/22/2025) and it added a huge penalty for not taking an RMD when before the update everything was OK.  That is, weeks ago I had completed my 1099-Rs and set the RMD amounts taken and everything was right, and just had not filed yet.  Today when I started it up, it updated and added the penalty. It is definitely NOT fixed! 

[VolvoGirl]

You need to go back through the 1099R entries and revisit the answers.  The questions have changed so your prior answers won’t be right especially if you answered them with a work around to make them come out right.

[lesmikesell]

Thanks.  I don't recall needing a workaround before.  I had put in how much was QCD, RMD, and conversion and it all looked right.

[bts]

My problem was with an inherited IRA. I took considerably more than the RMD so I answered that only some of the distribution was used for the RMD, which seems technically true. However, I was then subject to a significant penalty. Once I changed the answer to ALL of the distribution applied to the RMD it reverted back to no penalty. I find the language of these questions confusing. (And it doesn't help that the IRA was moved from one institution to another last year.) The kicker is that I may not have noticed this except that after a software update I went from a significant refund to owing. Yikes.

[lesmikesell]

Does any of that map into anything on a form that gets filed?  I didn't think it even related to taxes as long as you withdraw at least the needed RMD amount and it isn't part of a Roth conversion.

[bts]

I don't think it had anything to do with how I entered the 1099-Rs. The difference seemed to hinge on how I answered the questions about how much of the withdrawal applied to the RMD: 1) all of it; 2) some of it; 3) none of it. I settled on #1 since that seems to keep things happy. My withdrawal was about 2X the RMD so I had initially picked #2 since that seems more correct to me -- only some of the withdrawal was necessary to cover the RMD -- but after the recent software update that generated a significant penalty. Switching to #1 put me back to where I was before the software update. I think I last updated a week or two ago so it was a fairly recent change that even alerted me to an issue. (I always worry about this type of thing should I end up filing before some critical update has been released for the software. I guess I'm "fortunate" to still be waiting on a 1099.)

[JT608]

The RMD question is not clear very confusing!  It calculates the 25% excise tax penalty when you enter your correct RMD amount, this is incorrect at least how they have the question worded.  In addition I really do not like the new format for interest and dividend income, big step back!  Turbotax has really gone down hill in my opinion.  I've been a faithful customer for many years but think I'm going to be looking elsewhere next year.

[lesmikesell]

I would prefer it to just ask if you need it to help with determining if you completed your RMD for the year before presenting any of that stuff.  I don't think it is really posted on any tax forms anyway unless you did not take enough and owe the penalty.   And I don't think it is very smart about dealing with multiple IRAs where more of the combined required RMD comes from one of them.   Regardless, I managed to get numbers in that made it remove the penalty.