I have multiple IRAs. In total I have withdrawn my full RMD but not the full RMD from one of my three IRAs. Why is TurboTax calculating a penalty?

[Puli3339]

Please run the update, mine has run without error. Cheers.

[wja]

YES!! It looks like TT finally fixed the IRA/RMD (at least mine anyway) issue with the latest update.  YAY.

[glashfordjr]

Big problem with Turbotax and RMD.  Opened turbotax last night (2/19/2025) and it did an update and it just added $21,547 to my tax bill.  The change came upright after the update before I made any changes to the RMD.  I have one RMD that included distributions from my calculated RMD plus big distributions for a Roth conversion.  On Schedule 2, line 8 (additional tax on IRAs_ was $21,547.  Was anyone else experienced the same problem since 2/19/2025.

[plpollack]

Yes - I see it is fixed.

However, as a programmer, not the way I would have.

If you have 2 IRA's and take distributions from each, but not the exact RMD for each, you see (correctly) that the totals match and everything is fine.

BUT - if you take distribution from only one (satisfying your total RMD), so therefore you have no 1099-R for the other, this gets (again, correctly) clarified only during the follow-up questions about another IRA you did not take any distribution from.

SO - if this is your situation - be patient until the follow-up.

I generated a pdf for just Form 5329 and you can see it all there. 

[Holintax]

The update worked for me as well. I had five IRA accounts, four from which I took distributions. In some I took more than required, in others, less. In total, I took a bit more than required. I did enter the information that there was no distribution taken from one of the IRAs that had an RMD. A form 5329 was generated, however, no penalty or tax due is shown. It shows that my total distributions were more than required.

I guess the many calls that we made finally paid off. It took way too long for the fix to be made. Hopefully, next year, we won't have this problem.

Good luck to all of you who are still having issues.

[maechl]

I have 4 IRAs and took distributions from two.  Everything looks right now.  I never file before March, so all's well that ends well.

[DelGman]

2 questions if I might,  

How do you get the update.

Do I have  to delete the 1099r information and re enter it after the update.  Thank you.

[plpollack]

I'm on desktop Deluxe.  When I opened, it then as usual proceeded to ask if I wanted updates.

I then made a copy of my tax file with a new version number in the name (my usual method - I usually end up with 4 or 5 versions so I can compare) and then corrected my 1099-R entries.

Note that the "Filing" version of the pdf does not have the Form 5329.

I saved a separate pdf with only that Form.

[dan_in_MI]

I opened TT today and downloaded the updates when asked. My 1099rs have RMD, Roth Conversion, QCD, and a little extra taxable distribution. All was handled correctly.

I did not delete or reenter the 1099r, but went through the entire question set for the 1099rs. For each 1099 I put in the amount of RMD required for just that account, and the RMD related distribution from this account, even it it was to cover another account The update made my tax go way up due to the previous entries, but as soon as I redid all the questions it came back to where it should be. I did a quick review of all the forms and all was well except two tax due and penalty forms that I had to back out some entries related to apparent tax underpayment when I had RMD penalties due to the TT RMD issue.

It looks like it works correctly now. The process for getting Turbo Tax to correct it was terrible. It seems like they should have a trouble ticket system available to users.  At the very least they should have a PUBLIC list of known problems, work arounds if applicable,  and projected correction schedule. This was way more stress than it should have been.

[John_Bissell]

I have yet to receive the email on this that I signed up for. It's useless now since I check for updates often, and I doubt that it has any real explanation. Years ago, TT did explain some of the major changes/fixes when they released an update. We no longer get that.

I noticed that the RMD updates did question me on whether the 1099-R from my pension, which does not have the IRA/SEP box checked, had a distribution. Not sure why it would question an 1099-R from a pension. I just checked "No" and everything went OK.

[ar10navt]

It looks like it worked correctly. However ,  when I go into "forms" I see a 5329T with no penalty. This Turbotax 5329t does not look like the IRS 5329.  It contains my wife's Fed retirement info which she took the correct amount. When I generate a PDF for manual filing, I don't see this form. Anybody know what this 5329T is ?

[VolvoGirl]

The "T" at the end stands for Taxpayer.  Is she listed first on your tax return?  I deleted my 5329 in forms and was able to efile.  

[dmertz]

The unnecessary From 5329 will linger if you had previously made entries to request a waiver of an excess-accumulation penalty.  You can simply delete the unneeded From 5329 to get rid of this form.  This form will get regenerated automatically if your tax return still contains something that suggests that From 5329 is required to be included with your tax return.  (If a regenerated Form 5329 shows an excess contribution to some sort of account, revisit that section in TurboTax to reenter your year-end balance for that type of account.)

[tj-21]

Need help with in-putting of my husbands 1099-R.

-  This is our first year requiring a RMD, husband turned 73 in 2024.

-  Turbo Tax Premier asks for the amount that was required to be distributed by Dec 31, 2024.

-  Turbo then states:

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

RMD due by Dec 31, 2024: ___________

My Question: We decided not to wait till April 1, 2024 to prevent reporting 2 RMDs in 2025. He took his RMD in Dec, 2024. I'm a little confused by the wording to not include RMDs due by April 1. Should I be entering our RMD  in the box for Dec 31, 2024??

Also, we took a bit more than our RMD by almost $300. If we are required to enter in the Dec 31, 2024 box, do I enter the actual RMD required amount or the total??

Add'l info: RMD Required: $33,703.28 but took $34,000. Plus additional $12,000 for Roth IRA Conversion. Box 1 on 1099-R : $46,000.

2nd Question:

We also receive one other 1099-R every year for his pension which we input separately in Turbo Tax. This year Turbo Tax asked if we had a RMD for his Pension?? Seemed kind of odd, thought it was due to his age, but we never heard of an RMD with a pension?? Any comments?

Thank you

[tj-21]

Quick follow-up to my question above to clarify:

Which amount do I enter for the RMD?

The $33,703.28 or the $34,000.00

Thank you