RMD withdrawel issue

[tcsmith22]

They actually are working on it.  They opened an issue with their developers about a week before you (and I) discovered the issue: 

https://ttlc.intuit.com/community/retirement/discussion/multiple-ira-rmd-and-actually-distrib[produc... says, "Our programmers are currently working to improve the RMD section experience.  Be sure to sign up for email updates here: Why am I getting an RMD distribution amount error?"

[VolvoGirl]

You need to go back through the 1099R entries and revisit all the answers. There was an update on Feb 20, 2025 that fixed the RMD problems. So if you have the Desktop program be sure to update it. The questions have changed so your prior answers won’t be right especially if you answered them with a work around to make them come out right. I would delete the 1099Rs and enter them again manually. That usually fixes it and resets the questions. Deleting has been fixing it for others.

[Lenyi]

I have followed the instructions.  After entering the RMD due on 12/31/2024 and indicated the entire distribution applied to 12/31/2024. there is still a penalty. Please advise how to resolve this issue.

Thanks. 

[DanaB27]

Please try delete the Form 1099-R and reenter it. If you are using TurboTax Online please delete the cookies and clear the cache before adding the Form 1099-R again.

If you are still having issues, is this an inherited IRA?

@Lenyi  

[Lenyi]

TT is desk top version. this is not inherited. 

I entered the gross distribution and entered the rmd due on 12/31/2024 and the shows tax due even selecting the entire distribution still shows tax due.  TT asked if we plan to withdraw the amount during correction window? The amount already distributed.

After reviewing the 5329-T form. There could be issue with the distribution code.  My 1099R form distribution code is 7D (annuity payments...) . When using 7D, there is form 5329-T and under other qual. plan line does not show the distribution amount and shows undistributed RMD amount.  This I compared to the previous year TT the same company 1099R, it does not have this issue and didn't have form 5329-T.

FYI if the distribution code is 7 without selecting D (annuity payments..) then there is not tax due and does not have form 5329T.

Please advise how to fix this issue.

Thanks.

[DanaB27]

Yes, there is an issue when entering a Form 1099-R with codes 7D. Please see Why am I getting an error when entering Form 1099-R box 7 code 7D? to sign up for updates. Thank you for your patience.

@Lenyi 

[Milo66]

I have 3 IRA accounts.

One I took the whole required minimum distribution.

Second is an Annuity and I took 2x the minimum distribution.

Third I took NO RMD distribution and the Annuity RMD will more than cover this.

SO WHAT DO I DO??
Desktop Premier only gives me a Penalty.

[dshafer]

I WAS a long-time user of TT; however, the lack of a disk, buggy software, and the continued RMD issues this is my LAST YER.  H & R for me next year. 

[DanaB27]

Please follow these steps:

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R” and enter your first 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" screen select "The entire distribution applied…"  / or select "Some of this distribution…" and enter the RMD amount 
5. On the "Your 1099-R Entries" screen add the second 1099-R for the annuity
6. On the "Required Minimum Distribution" screen enter RMD for this account 
7. On the "How much of This Distribution Applied to your December 31, 2024 RMD" screen select "The entire distribution applied…"  / or select "Some of this distribution…" and enter the RMD amount (if this distribution includes RMD for other IRA accounts then you included the amount here)
8. On the "Your 1099-R Entries" screen click "Continue"
9. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "An IRA..."
10. On the "Total RMD for all other IRAs" screen enter the RMD from your other IRAs (where you didn't take a distribution from).

@Milo66 

[Gloszyman]

Same problems are happening in 2025 tax year regarding RMD’s.  I took out same amount we needed to and Turbo tax is showing we did not take out and penalizing us with$10,000 in taxes

[MarilynG1]

If you received monthly payments from a retirement plan that included your RMD, you can indicate in TurboTax that 'the entire distribution is RMD'.

If you took a one-time distribution to satisfy your RMD, again indicate that the entire distribution is RMD.

The IRS has no idea what your RMD should be (nor does TurboTax), but expects that between you and your plan administrator you will meet it, except in rare instances. 

You could return to the 1099-R section and delete/re-enter your info.  If you're using TurboTax Online, clear your  Cache and Cookies after deleting, before re-entering.

@Gloszyman 

[dshafer69]

Wish I had followed my own advice.  In addition to the RMD issue WHICH HAS NOT BEEN FIXED AFTER MORE THAN A YEAR, I am having display issues that TT has not resolved.

[dshafer69]

I wish TT's programmers would spend their time working on this YEAR OLD ISSUE, and less time with their cutsey badges.

[plpollack]

I am using TTax Deluxe Windows.

Same issue as last year (?), which I thought had been fixed for 2024 taxes (?).

This may be a little bit different though.

I have several IRA's.  One of them, call it A, was moved by my financial advisor to a different settlement company, call it B, during 2025.  I took RMD from both A and B during 2025.

So, B had no RMD required for 2025 because there was no B in 2024.

TTax calculated a form 5329 penalty, ignoring the RMD I took from B during 2025.

Workaround: I said B had an RMD of $1, and A had an RMD $1 less than it really did.

This version generated NO penalty.  I do not want to file it this way.

[dshafer69]

I do NOT believe it is a good idea to lie to the IRS even if it is a tiny amount.

This is my LAST year to use TT.