RMD withdrawel issue

[dshafer69]

I wish TT's programmers would spend their time fixing issues ans less time on their cutsey badges.   

[MarilynG1]

If you know that you took your total required RMD from all your accounts, in TurboTax you can indicate that the RMD amount for each 1099-R is the distribution amount, and choose 'entire distribution was RMD'.

Although this is not technically correct, neither the IRS nor TurboTax knows what your RMD should be.  The IRS expects that your plan administrator (and you) insure that your RMD is distributed each year. 

This prevents Form 5329 from generating with incorrect info. However, your workaround is perfectly acceptable as well.  The bottom line is that if you didn't take your RMD, you may be assessed a penalty.  In most cases, this was due to a mistake which you explain to request a waiver of the penalty (which is usually granted). 

Here's more info on Form 5329.

@plpollack 

@plpollack 

[plpollack]

@MarilynG1 - Thanks for your reply.

For each of my 1099-R's I choose 'entire distribution was RMD.'  What else could it be?  Seems an odd question.

It does not say "Distribution was my entire RMD."  That would be a different question, and irrelevant, since I can take whatever I want from wherever I want so long as I hit my total RMD.

I'm glad you agree "workaround is perfectly acceptable" - whatever other workaround is there?

Hopefully, TTax

[manolan]

I found a similar issue with the Form 5329-T.  I have 2 different 1099-R forms, but only one of the 2 was included in the "Distributions:" box as opposed to the sum of the 2 1099-Rs.  This caused the Turbo Tax software to imply that I didn't take out the RMD and, therefore, implied that I owed taxes in excess of $7k.  I tried to get in touch with someone at Turbo Tax, waited 3 hours for a 45 minute wait notice on my callback, and finally just gave up.  I then found that I could override the "Distribution:" entry with the correct entry on the actual Form and got a tax refund.  Only problem now is that Turbo Tax won't let me e-file because of the change to the form that I made.

[MarilynG1]

It sounds like you may need to delete and re-enter your 1099-R forms, or step through the interview again.   If you know that you received your required RMD for 2025, you won't have Form 5329 in your return.

After entering your 1099-R, when TurboTax asks your RMD amount, you can enter the amount of the total distribution.  On the next screen, indicate that 'the entire distribution was applied to December 31, 2025 RMD'.

Neither the IRS nor TurboTax knows what your RMD should be.  They expect you and your plan administrator to insure that you receive the proper amount each year.

Here's more info on Form 5329. 

@manolan 

[user17703278137]

I deleted the 1099’s several times and reentered them.  The issue is a TT problem as after every 1099-r entry it asks what your RMD amount was.  The RMD was from 2 different accounts so what TT did was add the RMD from each entry where I put the total RMD we had to take.  This resulted in a double RMD amount.  To work around this I entered the amount of each 1099-R as the amount of the RMD.  So the 2 RMD amounts that I entered totaled my total RMD.  This fixed the problem and I no longer got a huge penalty.  I am hoping that TT either fixes this by asking the amount of your of your total RMD and then lets you select the 1099’s that apply or some other workaround to fix this problem.  It is not illegal to do this but I wasted many hours trying to figure out why they said I did not take my full RMD  and taxed me $9000 as not taking it all.  Hope this helps someone else who has more than 1 1099 form

[VolvoGirl]

@user17703278137   Yes I believe  you did it right by only entering the gross amount of that one 1099R as the RMD.    Are they all from IRA accounts?  You have to take the RMD separately for IRA and 401k accounts.  You can only combine IRA accounts for the RMD.    

[manolan]

I found that if I just removed the "X" from the "Corrected" box on the form I was able to file my taxes electronically.