RMD taken correctly, but penalty assessed

[jfschultz]

Thank you for looking at that @DanaB 

(update below)

I'm confused...

I have (2) inherited accounts, one Roth, one IRA

The Inherited IRA 1099 is entered first. The TT wizard asks for "amount that was required to be distributed by December 31, 2024 from this account". 

I took the full required RMD and entered same amount as the required amount.

(The TT wizards states:  Note: Do not include the RMD for other retirement accounts you may have. RMDs for other accounts should be entered separately

The Inherited Roth IRA 1099 is entered second.  The TT wizard never asks for the required RMD amount for the inherited Roth IRA.  I don't know how/where/why TT is seeing a required RMD amount larger than what is shown as distributed.  (I took the full required RMD from the Inherited Roth IRA)

-----update
ok, mystery solved, I think.  Thank you for your help @DanaB !  Your comments helped me figure it out.  The entry wizard doesn't ask for the required RMD amount (on the inherited Roth IRA).  I re-entered the 1099s and there was no penalty this time.  Upon doing return review, TT picks up the error (amount of required RMD missing) and asks for the required RMD amount.  Not realizing it was specificallly asking for the required RMD amount just for the inherited Roth, I was erroneously entering the amount for the other.  (scrolling down the inset window of the form helped clarify/confirm)

So, I think it is all correct now.  Thanks for your help,  would not have figured it out without your input.  Hope this maybe helps anyone else with similar issue.

[DanaB27]

To clarify, you are using TurboTax Online? 

When we are opening tokens they open in TurboTax Desktop and in TurboTax Desktop you get follow-up questions for the inherited Roth IRA. But when I tested it in TurboTax Online I don't get the RMD questions for the inherited Roth IRA. When I recreate the entry of the two Form 1099-Rs in TurboTax Online I do not get a penalty on Form 5329.

Can you try one more time to delete the Form 1099-R for the Roth IRA and then go all the way through the retirement income interview.  Then add the Form 1099-R for the Roth IRA again. 

If you are still having issues you might need to switch to TurboTax Desktop: How do I switch from TurboTax Online to TurboTax Desktop?

@jfschultz 

[jfschultz]

Yes, I am using TurboTax Online.

I think the error is solved now. 

Deleted the 1099s.  Cleared cache and cookies.  Re-entered the 1099s.
(The wizard for the inherited Roth IRA does not ask for the required RMD amount).
Completed the 1099 entry.  (skipped review return).  Viewed 1040 and there was no penalty.
Did review return, error found with RMDs - required RMD amount missing.
This time, entered the required RMD for that specific distribution only (the inherited Roth-IRA)
(Initially didn't recognize that the error checking/correction wizard was referring to only the inherited Roth IRA - both sources of distribution have same name - but clarified by looking at further details of the form which shows the distribution amount, which matched the inherited Roth IRA)
Now on view return, no penalty

Thanks again @DanaB27 

p.s. good to know that it's possible to switch to Desktop from Online if need be

[ssmith777]

Just wanted to share an RMD error loop that I had with a cx. Cx had two inherited Retirement accounts were both account distributed RMD to her every November. The software didn't allow one of them the question of whether or not an RMD was taken. It will loop an error for cx to take the RMD during the corrective window an access an error.                                                                       Here is the fix :                                                                                                                                                                                                                                                                          Please go thru Federal Review first --> Errors below                                                                                                             (1) Did you withdraw RMD during correction box? Let's answer Yes here (need to go back to change after answering #2)
2) Entire gross  applied to 12/31/24 RMD: YES
3) #1 error will re-appear. And we need to say NO
After this, it should clear errors away