RMD Reporting

[Lawrence-Stephey]

Using Deluxe, TurboTax asks if the entire amount was a RMD.  Even after checking YES, the next page shows a prompt with a vague question “What was the required minimum distribution for (name) account for 2024?”  Followed by an entry box with the prompt “Required Minimum Distribution Amount”

The question implies the total RMD for ALL accounts.  In my case what I took for the 1099R at issue is only a fraction of my total RMD.  If I enter that total, the tax calculations are incorrect.  If I enter the total RMD on the remainder of my 1099Rs, things are really wrong.

If on the prior page if I say that the total withdrawal was an RMD, I don’t believe I should be seeing this subsequent page.

[rjs]

TurboTax is working on clarifying the RMD questions. There might be an update later this week. Go back through the questions next week and see if there has been any improvement.

[Lawrence-Stephey]

Thanks, I will.

[Lawrence-Stephey]

Just downloaded the latest release and it is STILL an issue.

I checked the 2023 edition, and it appears NOT to be an issue there.  

[lnovotney]

I am having the same issue.  I have an RMD that I want to report on two different IRA distributions. An 80/20 split.  When I type in the information, the program asks for the 2024 total RMD for both distribution inputs.  when I look at the results, my RMD is now twice the value.  What am I doing wrong

[Lawrence-Stephey]

I don't think YOU are doing anything wrong.  I think it is a software bug.  If you check on the prior screen that the 1099R amount is ALL RMD, then you shouldn't see the second screen asking for the amount of the withdrawal that is RMD.  If the amount of the withdrawal is more than the RMD, then the questions make sense.  I verified that the 2023 version of TT in fact does it that way and the second screen does not show.

Until the software fix arrives, the work around is to place the full amount of the 1099R withdrawal in the amount box on the second screen, and NOT the full RMD that you are pulling from all your IRA accounts.  Leaving it blank does not work as the software expects that field to be populated.

I have yet to do a final check as I have more 1099s coming, so I don't know if my work around will pass the final check.

[VolvoGirl]

Yes.  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.

[Lawrence-Stephey]

Well, you might think it is a "feature," but I see it as a bug.  If you check that the full amount is an RMD, you should have to enter the RMD amount again.  It is not logical.

[Lawrence-Stephey]

After today's update, the problem still persists.

[JohnB5677]

If you're getting the message "RMD amount should not be less than the distribution amount that is for the RMD"

We’re currently working to resolve this issue. 

If you’d like to receive progress updates, sign up at Why am I getting an RMD distribution amount error?

[Lawrence-Stephey]

Today's update still not resolve the issue.  Is it possible to get an ETR?  I've got more than 10 1099-Rs that need to be fixed.

It did work in 2023, so the problem should not be that hard to find.

[Lawrence-Stephey]

I think I see the issue, we don’t have a Pub 590-B for 2024, yet.  In your 1099R worksheet for 2024, there is a new section “RMD Excess Accumulation Worksheet."   I would guess this is coming from new instructions for 2024, but not yet completed.  You are attempting to populate these new fields.

So, are you (we?) waiting for IRS guidance here?  If so, I understand the delay.

[TuckerMonster]

There is more than a couple of software issues here.  Presently the software does not account for extra RMD distributions from any given account, so these amounts are not applied to other account shortfalls in RMD.  Additionally I don't see where it accounts for RMDs for accounts where no RMD was taken.  These RMDs need to be included in the total amount of RMD that needs to be distributed.  All the RMD requirements and all the RMDs taken, whether too much or too little from any given account, has to be compiled to calculate taxes correctly.  Additionally, if the RMDs are due and taken for different years at different times these have to be compiled separately.  Presently it does not appear that the software can do this.

[Lawrence-Stephey]

Issue appears to be resolved.

Thanks.

[TuckerMonster]

As of last night, Turbo tax has been updated but the calculations are still not correct.  There is a new worksheet for the Form 5329 but the compilations do not populate the 5329 correctly.  Additionally I don't think the Form 5329 calculation is correct.  At least now you can manually enter the correct (called for) values in the 5329 and use the waiver process to tell the IRS why their tax calculation is incorrect.  You have to read the desired information asked for in the on the 5329 in steps 52a/b and 53a/b very carefully, but if you enter the numbers as requested, it does not account for excess RMDs from other accounts that off set the excess contribution (RMDs not taken) from other accounts. Unless some more information and Turbo tax changes are forth coming, I intend to proceed as indicated.