First year of inherited IRA/retirement pension from my dadwhen I was discussing the distribution with Fidelity. They said that I had to take the RMD for 20

[dcl766]

My dad passed away in January 2024.
I received a distribution from his pension with Fidelity, and it was rolled over into a new inherited IRA I now have with Edward Jones. When I was discussing the distribution with Fidelity., they said that I had to take the RMD for 2024. So now I have two separate 1099R forms from Fidelity. One is for the distribution that was rolled over, and one is for the RMD. The problem is that TurboTax is asking me if I took the RMD and how much on both.🙄 Why would I need to take an RMD on an RMD? 

[dmertz]

When entering the Form 1099-R that has code 4, indicate that it is all RMD and the entire RMD required.

When entering the Form 1099-R that has code 4 and G, TurboTax should not be asking anything about RMDs,.  Despite that, TurboTax needlessly asks how much RMD is required with respect to this distribution and you must enter zero.

[KrisD15]

The 1099-R for the RMD of your father should have code 4 in box 7.

Enter the 1099-R

Select "This personal was born before January 1, 1952"

Enter the amount of the distribution in the RMD due by Dec 31, 2024 box on the "Required Minimum Distribution (RMD)" screen

Select "The entire distribution applied to the December 31, 2014 RMD"

Select NO for "Any Periodic Payment?" 

continue through the interview 

This completes the entry for your father's RMD

Next enter the second 1099-R 

Continue to the "What Did You Do With The Money?" screen and select "I rolled over all of this money"

Continue through the interview. 

The RMD will be taxable and the rollover will not

@dcl766  

[dmertz]

"Continue to the "What Dis You Do With The Money?" screen and select "I rolled over all of this money""

This question will not appear because an inherited pension can only be moved by direct rollover, indicated by code G along with the code 4.  (If the Form 1099-R for the portion moved to the IRA has only code 4, it's reporting a distribution that was not permitted to be put into an inherited IRA and TurboTax will again not ask what was done with the money.)

[KrisD15]

To clarify, can you tell us the codes in Box 7 of both 1099-R forms? 

@dcl766  

[dcl766]

Thanks for the reply.

I don’t see a spot anywhere on the 1099 (or that baffling screen that TT has apparently just recently added and which I pasted below) where it indicates and/or I can indicate that it is all RMD and the RMD amount.

I do see on the 1099R forms that Fidelity is treating them as two separate accounts, and they have two separate numbers that are numbered sequentially. I’m not sure if this affects anything.

None of the numbers I am expecting seem to make sense unless I enter a “zero” on this screen for both 1099’s:

Let's get more information about your Required Minimum Distribution (RMD).

Live tax advice

We still need some required info.

If your FIDELITY INVESTMENTS INSTITUTIONAL OPERATIONS CO. account was subject to a Required Minimum Distribution (RMD), we need to know the amount that was required to be distributed by December 31, 2024 from this FIDELITY INVESTMENTS INSTITUTIONAL

OPERATIONS CO. account.

Do not include RMDs which are due on April 1. RMDs for the first year you're required to take a distribution are generally due on April 1.

RMD due by Dec. 31, 2024

$

Needs info

Note: Do not include the RMD for other retirement accounts you may have. RMDs for other accounts should be entered separately.

[dcl766]

Thanks again.

To clarify, only box 4 is checked for the RMD distribution.

There is a 4 and a G checked for the total distribution that was rolled over.

[dcl766]

Sure, thanks.

Just a 4 for the RMD.

A 4 and a G for the rollover amount.

[dcl766]

Thanks and agreed on the fact that the RMD will be taxable and the rolled over amount will not be.

What’s baffling me is if I put the RMD amount in the stupid screen below that I think they just added for either 1099R they sent me, then it doubles my tax liability for whatever reason.🤷

Let's get more information about your Required Minimum Distribution (RMD).

If your FIDELITY INVESTMENTS INSTITUTIONAL OPERATIONS CO. account was subject to a Required Minimum Distribution (RMD), we need to know the amount that was required to be distributed by December 31, 2024 from this FIDELITY INVESTMENTS INSTITUTIONAL

OPERATIONS CO. account.

Do not include RMDs which are due on April 1. RMDs for the first year you're required to take a distribution are generally due on April 1.

RMD due by Dec. 31, 2024

$0

Note: Do not include the RMD for other retirement accounts you may have. RMDs for other accounts should be entered separately.

[DianeW777]

If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information it would help.  If you would like to do this, here are the instructions:  (Don't forget to give us the state)

TurboTax Online:

Open your return -Go to the menu panel on the left side of your return and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number and your state. This will allow us to open a copy of your return without seeing any personal information.  

TurboTax Desktop:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

1. Click on Online in the top left menu of TurboTax CD/Download for Windows
2. Select 'Send Tax File to Agent'
3. Write down or send an image of your token number and state then place in this issue.
4. We can then review your exact scenario for a solution.
5. Please also tell us any states included in the return. This is necessary for us to view the return.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.