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

[flamodeo]

As of today, it still doesn’t work properly.

[MarilynG1]

Neither the IRS nor TurboTax know what your annual Required RMD is.  For each 1099-R you enter, you could say 'Yes, the distribution includes RMD', and 'Yes, the entire distribution is RMD'. Enter the entire distribution amount as RMD amount. 

The IRS expects you and/or your plan administrator be responsible for withdrawing your RMD.  The IRS states that you can take your RMD from one account, or across several accounts.  Here's IRS Requirements for RMD's.

You may need to delete/re-enter your 1099-R's if you're having issues with penalties being generated, and if you're using TurboTax Online, clear your Cache and Cookies.

@flamodeo 

[janci]

I cannot get TT to properly calclulates tax for my RMD. I turned 73 in Dec. 2024. I understand that my first RMD is not due until April 1. TT asks how much and what part of the distribution was required by Dec. 31, 2024. If I enter the full 1009 amount and state that all was required by Dec. 31, 2024, TT calculates a penalty tax. If I enter zero was required, it still calculates the same penalty. What is the work around for this? I am ready to abandon TT over this after more than 20 years of use.

[janci]

I also tried deleting and re-entering the 1099-R's and it still calculates a penalty.

[AuntyI]

As others have stated, if this is a simple IRA (not some 40n/x), do not select "Partial" when asked how much of the distribution was an RMD.  I have not checked what happens now if you say Partial (i.e., if the bug is still there in the latest update), and I have not investigated how to handle the weird 40n/x cases (where you must say Partial for some reason), since I have a life and anyway TT seems to ignore it when you tell them about a bug.  But I verified that choosing "All" worked on 3/10 when I submitted my return.  I also verified that when "all" was used for the 1099's, I could properly report the IRAs that had no distribution, since extra was withdrawn from other IRAs, and the TT calculation was correct, with no incorrect penalty.  Think of the question as "How much of this distribution can be applied to ANY RMD, i.e. for this IRA or any other IRA?"

[JudithAR]

I called this number on a Sunday even and there was someone who was able to help me get through this issue for my case situation.  I would suggest trying to call their support. 1-800-446-8848

[Taxpro2025]

Hi, sorry you’re having trouble. Please use the Live help. 

[DanaB27]

What is the code in box 7? Are you using TurboTax Desktop or TurboTax Online?

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. Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
5. Continue until "How much of this distribution applied to your December 31, 2024 RMD?" screen and select "The entire distribution was an RMD"  /or select "Only part of this distribution was a RMD" and enter the amount of RMD (if this distribution includes RMD for other IRA accounts then you included the amount here)
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 "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024, otherwise select what is applicable. 

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 "The entire distribution applied…"  / or select "Some of this distribution…" and enter the RMD amount (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 "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024, otherwise select what is applicable. 

If you have multiple IRAs but took the total RMD only from one IRA then select "An IRA..." on the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen and click "Continue". On the "Total RMD for all other IRAs" screen enter the RMD from your other IRAs (where you didn't take a distribution from).

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

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 Smart Worksheet" to check that you met the RMD but this will not be sent to the IRS.

@janci 

[rowandh]

You may have mis-typed, but at face value - if your distribution was less than the RMD, you will owe a penalty.

[GLD777]

Not necessarily - it depends on the type of account.  If you have multiple IRA and 403b accounts there is no penalty if your TOTAL RMD for all accounts is met by the TOTAL distributions across all accounts.  However, for 401k and 457b accounts the RMD must be met for each individual account or a penalty is due as you suggest. This distinction is discussed in the link above on "Can an account owner just take a RMD from one account".

[janci]

Thanks for the response. Unfortunately, I followed your suggestion (TT online) and it did not change the result. I also cleared browser cookies and cache, deleted and reloaded the 1099-R's. Box 7 is filled in with code "7" (normal distribution). This was my last attempt. I am now abandoning TT.

[moi_2025]

I would like to note that the RMD question wording in last year's TurboTax software (for tax year 2023) was clearer and more straightforward, making it easier to understand and respond to.:

"Was this withdrawal an RMD for 2023?"  

-"Yes, some or all of this withdrawal was an RMD."

-"No, none of this withrawal was an RMD."

__________________________________________

"Tell us how much of the $xxxx.xx (name) received applies to the RMD that needed to be taken out?"

-"All of this distribution was an RMD"

-"Part of this distribution was an RMD"

>>>I would just click on "Yes,...", and then click on "All...", and I was done.

>>>But this year, they added a page requesting us to enter the precise amount of the Required Minimum Distribution (RMD) due by December 31, 2024. This necessitates that I verify the retirement account balance as of December 31, 2023, to accurately calculate the RMD, using the Lifetime Expectancy Table (or, in our case, the Joint Lifetime Expectancy Table). The reason for this is to ensure that the financial institution is withdrawing the correct RMD amount, and I want to confirm its accuracy. 

The requirement to provide a specific amount prompts me to ensure complete accuracy in RMD rather than relying solely on the institution's figures (thanks to my OCD). >_>;

[LL1070]

It is still assessing me a penalty for not taking the full rmd when in fact I did. It’s April 3 and still TT has this problem. I almost fainted when I saw the taxes I owed until I go online and see that many have the same issue.

[DaveF1006]

It depends. Review your entries to make sure everything is recorded correctly. Then there'll be follow up questions that are asked:

1. It'll ask what  RMD requirement was for this year.  If it's for the full amount of the distribution list, the full amount.
2. Then there will be a follow-up screen. Here say that the entire distribution is applied to the December 31, 2024 RMD.

@LL1070