Tax Year Prior to 2020: I have two RMD's. How do I enter the nontaxable amount for each RMD separately on Turbo Tax online?

[tmstengel]

Turbo Tax does not allow me to enter a basis for each RMD.  I need to keep each RMD separate.

[hbl3973]

Are you referring to traditional IRA required minimum distributions?   Or are you referring to one RMD for you and one for a spouse?   Or are you talking about 401(k) or similar accounts?  Please elucidate.

[DawnC]

For your IRA accts :

You do not keep track of them separately.  For tax purposes, you only have one Traditional IRA which is the aggregate total of all existing IRA accounts.  The non-deducible basis applies to the overall aggregate IRA total.   It also does not matter which IRA account or accounts the RMD is taken from since the total years RMD amount is based on that aggregate total value as of the end of the previous year.  

When calculating the non-taxable portion of your RMD on Form 8606, all of your IRA Accounts (Excluding Roth) are taken into account regardless of whether they are made up of Deductible or Non-Deductible Contributions.  For more information, you can click this link to see IRS Pub 590, Distributions from IRA's starting on Page 13.

Use Form 8606 to track the basis of your non-deductible contributions when you:

• Take distributions from a Roth IRA
• Take distributions from a traditional, SEP or SIMPLE IRA at any time after you have made nondeductible IRA contributions
• Convert a traditional, SEP or SIMPLE IRA into a Roth IRA

Where do I find Form 8606?

[tmstengel]

One is my traditional IRA.  The other is a traditional inherited IRA.  I need to keep the nontaxable amounts separate.

[tmstengel]

One is my traditional IRA.  The other is my inherited IRA.  I have to keep the basis separate.  

[VictorW9]

To enter your RMD, you enter form 1099-R for the RMD and follow the interview in TurboTax to indicate that the distribution is an RMD and whether or not the RMD requirement is satisfied. Enter each 1099-R and answer the questions about the RMD.

You can enter your form 1099-R by following these steps:

1. In TurboTax, open your tax return
2. Click on Federal in the left-hand column, then on Wages & Income on top of the screen
3. Scroll down to All Income, locate the section Retirement Plans and Social Security and click on Show more
4. Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).

[dmertz]

The basis tracking within TurboTax is only for your own IRAs.  You must track the basis in the inherited IRA yourself and calculate the taxable amount of any distributions from the inherited IRA yourself, generally by preparing a separate Form 8606 outside of TurboTax.  When you enter the code 4 Form 1099-R reporting the distribution from the inherited traditional IRA, TurboTax will simply ask you to enter the taxable amount that you yourself calculate.

[fanfare]

Don't forget to attach that 8606 that you worked up to your tax return.

That means, you must file a paper return.

[tmstengel]

Turbo Tax did not allow me to enter the taxable amount for my inherited RMD.   It has allowed me to do so in past years.  As a consequence my Qualified Dividends and Capital Gains Tax Worksheet an my Taxable Social Security Benefits Worksheet has to be done manually in addition to the form 1040.  Someone previously  mentioned that I should be able to enter the taxable amount of my inherited RMD.  Is that true, and if so, how?

[fanfare]

did you read the last sentence of dmertz's last answer above?

[dmertz]

If you selected code 4 for box 7, marked the IRA/SEP/SIMPLE box, indicated that you inherited the IRA from which you received the distribution from [financial institution] and indicated that the decedent had made nondeductible contributions to traditional IRAs, TurboTax will indeed ask you to enter the taxable amount of the distribution.  Under any other circumstances, TurboTax should not ask you to enter the taxable amount.

[AlohaAhma]

In 2019 I received the first IRA RMD deferred from 2018.  For the same IRA I also received in 2019 the RMD required for the year . TurboTax is not recognizing both as taxable income. The IRA is a qualified Pension plan. How can so enter info from two 1099-R forms for the same IRA. 

[dmertz]

Only if the IRS/SEP/SIMPLE box is marked on the Form 1099-R is the account an IRA.  A pension plans would generally not be an IRA.

There would typically be only one Form 1099-R reporting the total of these two distributions in 2019, so if you received two Forms 1099-R they are likely for distributions from two different retirement accounts.  If you received two Forms 1099-R and neither is marked CORRECTED, enter both by clicking the Add Another 1099-R on the Your 1099-R Entries page.

On the Form 1099-R for the distribution from the pension plan, box 2a should show the taxable amount that is being included on Form 1040 line 4d.  If the other account is an IRA and you have basis in nondeductible traditional IRA contributions, the taxable amount is calculated on Form 8606 Part I; be sure that you have clicked the Continue button on the Your 1099-R Entries page and, if asked, you have entered your year-end balance in traditional IRAs.

[janec]

only one, for me

[AmyC]

For 2020, there is no RMD.  This is an old thread. When you enter the 1099R, the program will ask you questions to determine the taxable amount.

@janec