How do I fix TurboTax not recognizing RMD was fully taken, since it was taken from four different funds within one IRA?

[MelSuz]

The amounts taken from the four funds (all in one IRA account) add up to the correct RMD. But TurboTax is not adding up the four withdrawals and applying them all to the RMD. (Last year's situation was the same, and TurboTax had no issue with this at that time.)

[VolvoGirl]

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 1099R for the RMD, not the total RMD for all.

[MelSuz]

Thank you for your reply.  That worked perfectly!

[WI Boy]

I have a similar, though not the same, issue. I have several IRAs, with a 1099-R for each. The combined disbursements exceed the combined total of the RMDs . But because  the disbursements from one of the IRA accounts was less than the RMD required for that account, TT is telling me I owe a penalty for that account, even though the combined total of all disbursements from all the IRAs exceeds the combined total of RMDs for all accounts combined.  My understanding is that I have the option to withdraw the total RMD amount from just one IRA or divide the withdrawal across several IRAs. Is my understanding correct? And if so, I do I avoid the penalty that TT is telling me I owe?

[JohnB5677]

As an alternative, you can post the combined total for all of the RMD's. 

Then Post each 1099-R separately,  

Follow the interview carefully.

• When you are asked "Let's get more information about your Required Minimum Distribution (RMD)."
• Record the TOTAL RMD required for all accounts.

As you go through the interview 

1. You will then get a follow-up question
2. Just a few more details about your RMD
3. I took out the entire remaining amount during the correction window
4. Yes

[Srr1]

As of yesterday, TurboTax seems to have fixed this issue. They have changed the questions to be clear that they want the RMD just for the account that each distribution came from. Then, they ask if there were any other accounts with no distributions (and thus no 1099-R) and what the total RMD was for those accounts. I deleted all my previous entries and re-entered them. This time no error message or tax penalty!

[jeffhecht]

This is not fixed. I have 2 IRAs, one of which I pay the total RMD for both IRA, the other of which I do not take money from. I was able to enter the total distributed (to me and to charities) for the first IRA from the 1099-R. The second does not send a 1099-R because I take no money from it. Turbotax asks me to enter the MRD for the second IRA, but it does not correctly add the payments. The money distributed from the first IRA totals more than the MRDs from both, but TurboTax does not seem to use that data. Instead it enters the RMD for the second account as a shortfall and calculates a penalty even though the total payments added together are more than the sum of the two. I checked the Forms view and some of the numbers aren't there and TurboTax won't let me make changes in the Forms View. You need to fix this.

[jeffhecht]

This has not been corrected despite the claim below. See my entry at the bottom.

[jeffhecht]

I found a solution -- change from Easy Step to FORMS, and you see a Smart Table that you can enter your data onto. I found it simpler than the EasyStep instructions, which I found misleading.

[MarilynG1]

Yes, the IRS allows you to take your annual RMD from any combination of your accounts.  If you know you withdrew the required amount, when entering a 1099-R you can indicate that 'all of the distribution was RMD' and then enter the total distribution amount as the RMD amount. 

Here's more info on IRS Requirements for RMD's.

@jeffhecht 

[Williek]

I have one RMD from one IRA and even though the amount is posted... TurboTax says no and I have loaded and reloaded....and there is no update listed 

[DanaB27]

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.

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. 

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.

@Williek

[ACGrace418]

This worked! Thank you so much!