Turbo Tax is appears to be handling each IRA distribution and RMD on a case by case basis, rather than aggregating as intended and approved by the IRS.

[HCQuestioning]

I’m doing this today 2/21/25 and still is scewed up as far as I can see. Maybe I’m not understanding - but I never had this problem before and have been using the online program for years.

[billjans]

I think the TurboTax fix was to create a 5329T in the online version.  Then the process to indicate that the total RMD has been withdrawn regardless of which accounts were used to satisfy the RMD is the same as what Gary Cohen outlined earlier in this thread using the desktop version.  TurboTax completes most of the information for the 5329T, but it is necessary to enter the total RMD amounts on both lines 52a and 52b.  This results in an unfulfilled RMD amount of zero.

[CKM Too]

In addition to not accumulating RMD from different accounts, an RMD amount has to be entered for other plans such as Cal PERS in order to eliminate the penalty in Turbo Tax.

[JLMcK]

I thought I was the problem at first but finally concluded that the program is faulty.  I Googled the issue and came upon this community. I'd like to finish  my taxes with Turbo Tax but it's obvious they haven't addressed the problem. I called and they created a ticket for IT. No guarantee on how long it will take. I may just switch to another provider despite putting a lot of work into this already. 

[DawnC]

Some TurboTax customers may receive an error, RMD amount should not be less than the distribution amount that is for the RMD. Check this entry, when the RMD and the amount applied to RMD are the same.   

We’re currently working to resolve this issue. If you’d like to receive progress updates, sign up below.  @JLMcK 

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[tcrump50]

Turbo tax is still not calculating RMD correctly.  I have triple checked and it is still telling me I have not made my RMD for 2024. 

[GregSNJ]

I'm having a similar problem, but it is rounding the amounts on some entries, but not all. so I end up being $0.60 short on my RMDs.  so it wants me to file the form or a waiver.

[choeni1216]

I keep getting emails that Turbo Tax appears to be handling RMD's on a case by case basis. Does this mean that we have to ask an "expert"? I have done this 2 times already and gotten different answers from both; however, now I have a new form that I am to review but is asks questions I have no idea how to answer and it I do try to answer it does not let me make changes to the form. Does this mean I will have to pay extra and have a person do my taxes? I am really disappointed that Turbo has not fixed this glitch. I have been doing RMD's for over 3 years and never had this problem before. 

[choeni1216]

Same problem and I have been doing this since the last week of January. Still no answers from Turbo Tax. At one point I got a response to wait to file. I have been waiting 6 weeks now with now no luck! Guess I'll lay out the extra money to have one of their people complete my tax. Normally, I wouldn't mind but have had RMDs for 3 years and never had a problem. If it's a computer glitch, you think they could fix it. Makes me wonder if you'll get audited this year at the ripe old age of 76.

[choeni1216]

There are never any progress reports. All I keep getting is messages from other users that there is a problem and Turbo Tax appears to be handling them individually. Well I started my tax return in January and it is still not solved. After speaking with 2 reps with different answers I am afraid to submit my taxes!

[Bartdad-42]

I thought it was doing something wrong with my RMD as well because it flagged me this year. Then I found out that I was taking my RMD from a combination of 401k and IRA accounts. They needed to be done separately. I couldn't take my full requirement from just one type of account. It didn't catch the error until this year. Last years Turbotax let it go through.  It was the IRA/SEP/Simple flag on the 1099-R that makes the difference.

[DanaB27]

Please try entering only full dollar amounts. @GregSNJ 

If you only had RMDs in IRAs then you can withdraw the RMD from any IRA account. But for 401(k) and 457(b) plans you must take the RMD separately from each of those plan accounts. Please see Can an account owner just take a RMD from one account for additional information.

If you met your RMD for 2024 please follow these steps in TurboTax Online:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. Continue until "How much of the $XXXXX was a RMD?" screen and select "The entire distribution was an RMD" /or select  "Only part of this distribution was a RMD" and enter the amount of RMD (if this distribution includes RMD for other IRA accounts then you included the amount here)
5. Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
6. On the "Review your 1099-R info" screen click "Continue"
7. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024, otherwise select what is applicable. 

In TurboTax Desktop:

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R” and enter your 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" 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)
5. On the "Your 1099-R Entries" screen click "Continue"
6. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024, otherwise select what is applicable. 

If you only had RMDS for IRAs and didn't withdraw from one IRA but took the RMD from the other IRA then select "An IRA..."  on the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen. On the "Total RMD for all other IRAs" screen enter the RMD from your other IRAs (where you didn't take a distribution from, this amount should have been included in step 4 above).
 

@choeni1216 

[JLMcK]

I'm using Turbo Tax Online.

I have 3 IRAs, 2 of which bear the total MRD for the 3 accounts.

Actually, the distribution from either of these 2 accounts covers the 3rd account's MRD "shortfall".

The sum of all distributions exceeds the total MRD and is in keeping with IRS regs.

All my 1099Rs have already been input to Turbo Tax. Do I have to delete them and start over & follow what DanaB27 outlined? I don't really understand what I'm supposed to do. 

Are you saying that for either of the 2 accounts that exceed their MRDs, I should say all of the distribution was an RMD because either one covers the shortfall for the 3rd account? And then I input its actual MRD or its gross distribution amount in answer to the MRD amount?

Last night I tried the approach where I answered the questions the same as last year and then opted to go with the 10% penalty route which lead me to a form to complete under which I presented the numbers to the IRS which showed I did take the RMDS (and more) for the aggregate of the accounts.  I'm assuming the IRS will agree.I thought, at least I can file my taxes. If DanaB27 can instruct me further using an example in how to handle my 3 IRA accounts, that would be great. Thank you.

[billjans]

I have the same situation, but I have only two IRA accounts with the RMD for both taken from one account.  My solution was to make entries in Lines 52a and 52b of the 5329T to net the remaining RMD to be taken to zero.  So far, I am not getting an error in TurboTax and am ready to file my taxes.  I have not tried using the solution outlined above.

[mz14]

When I enter the information on a 1099 R with is for my RMD distribution, turbotax ask for the amount of the RMD to be paid for this entry. The entry IS the RMD. I can't calculate the amount, do I enter the entire amount?