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 In total I have withdrawn my full RMD but not the full RMD from one of my three IRAs.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?

[ar10navt]

To Danab27:

On step 6 for the desktop solution to The RMD problem:

TurboTax asks " Did you miss a required distribution from ANY Retirement account"

I did not " miss it " I chose to take the required RMD distributions from the other three IRA accounts that I have.

So should I not report to TURBOTax the RMD which I have no 1099 for ???

You  also state that I should check the box "none of these plans failed to withdraw the RMD.

If I put in the RMD for this IRA that I withdrew no funds from, TurboTax issues a 5329T with no

penalty , but fills in the missing rmd amount, although the distribution total that it indicates is correct

for my RMD IRS requirement.

To me this is still not working correctly

Thank You for your support.

[ar10navt]

Thanks for your help. I put the question to DANAb27 .  I guess if I had taken something out of the IRA that is getting 5.5% I would not have this problem. I have done this for the past 7 or 8 years  and have never had this issue before.

Thanks again

[DanaB27]

Yes, you can enter the RMD for the IRA where you didn't take a distribution from because you took it from another IRA in the follow-up questions.

But you are not required to file Form 5329 since you met all of your RMD. But if you follow the steps below (with step 6 changed) TurboTax will enter the information in the "Additional Retirement Account Smartsheet". You can see this in TurboTax Desktop when you switch to form mode and look at Form 5329. But this will not be sent to the IRS.

The smart worksheet correctly shows that you did not withdraw the RMD from one IRA but took the distribution from your other IRA to cover the RMD. Note this smart worksheet is only for your records.

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 "Some of this distribution…" and enter the RMD amount / or select "The entire distribution applied…"  (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  
7.  select "An IRA..."
8. On the "Total RMD for all other IRAs" screen enter the RMD from your other IRAs (where you didn't take a distribution from).

 
Example of $8,000 RMD distribution from an IRA with $3,000 RMD and another IRA with $5,000 RMD  (nothing withdrawn from this account):

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. Continue until "How much of the $XXXXX was a RMD?" screen and select "Only part of this distribution was a RMD" and enter the amount of RMD /or select "The entire distribution was an RMD" (if this distribution includes RMD for other IRA accounts then you included the amount here)
5. Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
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 
8.  select "An IRA..."
9. On the "Total RMD for all other IRAs" screen enter the RMD from your other IRAs (where you didn't take a distribution from).

@ar10navt 

[ar10navt]

OK , I did all that and got a form 5329T. Except for the dollar amounts my form looks the same as your sample form.  The total distribution is the IRS required amount for my IRAs.  A question ,,what  is meant by Undistributed RMD ?

So this is the correct way to enter this data  ? and this form does not get sent to the IRS ?

Thanks for your help

[DanaB27]

Undistributed RMD is meant to show that you had one IRA where you didn't withdraw your RMD but you can see that you took it from another IRA to cover it. 

Yes, this is the correct way to enter this data. Correct, since you met all of your RMD and have no penalty calculated on Form 5329, Form 5329 will not be sent to the IRS. The Smart Worksheet is only for your information.

@ar10navt 

[ar10navt]

Ok thanks again for your help.

[Teacha214]

 Can you explain how I am should input my info for this if I had only one 1099-R that satisfied two different account RMD’s?

what do I put in For each of the questions it is asking regarding the one 1099-R? Do I add up both RMD’s that were satisfied and include that sum?

I can’t do any steps past step 4. Why?

[Teacha214]

So I have one 1099-R that satisfied two different RMD’s. What information do I put in each question they are asking? Will I show the sum of the two RMD’s? And what if my 1099-R distribution is over the amount of the two RMD’s, what number would I put where?

[Teacha214]

I am still confused. What should I do if I have two IRA accounts that I satisfied the RMD’s for but took a distribution from only one of the IRA’s so I have only one 1099-R? I don’t know what information to put in each box they are asking for so it is all correct and no penalities are calculated.  

[Teacha214]

Did you get a response and fix for this?

[Teacha214]

Did you get this figured out and if so can you explain it to me I am in the same boat. Two IRAS and only one 1099-R satisfied both RMDS. Thanks for the help!

[Teacha214]

If we have attempted to input our information 1099-R and RMD in TT a few weeks ago, will we need to start over when a fix is complete or will everything be ok to continue? In other words will we have to delete our entire saved tax form from this year and re-do the entire tax for inputting again?

[Teacha214]

So I have this same situation. Are you saying to follow the prompts through to the end and it all works out inTT, or are you saying there still is an issue?

Do we have to remove all of the information we had previously put in TT regarding the 1099-R, or not?

thanks!

[DanaB27]

Example entry of $8,000 RMD distribution reported on Form 1099-R from an IRA with $3,000 RMD. A second IRA with $5,000 RMD (nothing withdrawn from this account).

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. Continue until "How much of the $XXXXX was a RMD?" screen and select "Only part of this distribution was a RMD" and enter the amount of RMD of $8,000  /or select "The entire distribution was an RMD" (if this distribution includes RMD for other IRA accounts then you included the amount here)
5. Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen ($3,000)
6. Continue through the interview until you get the the "Review your 1099-R info" screen, click "Continue"
7. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select 
8.  select "An IRA..."
9. On the "Total RMD for all other IRAs" screen enter the RMD of $5,000 from your other IRAs (where you didn't take a distribution from).

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 ($3,000)
4. On the "How much of This Distribution Applied to your December 31, 2024 RMD" select "Some of this distribution…" and enter the RMD amount of $8,000 / or select "The entire distribution applied…"  (if this distribution includes RMD for other IRA accounts then you included the amount here)
5. Continue through the interview until you get the "Your 1099-R Entries" screen, click "Continue"
6. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen  
7.  select "An IRA..."
8. On the "Total RMD for all other IRAs" screen enter the RMD of $5,000 from your other IRAs (where you didn't take a distribution from).

[Edited 2/27/2025 | 3:08am PST]

@Teacha214 

[Teacha214]

I can only get through step 4. The other steps do not show up. 
now what do I do?