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.

[choeni1216]

I GAVE UP AND HAD AN EXPERT DO MY TURBOTAX. I HAD TO PAY $203 BUT FINALLY AFTER 6 WEEKS GOING BACK AND FORTH, SHE COMPLETED IT IN ABOUT 15 MINUTES. THE INSTRUCTIONS THAT TURBOTAX JUST SENT ME ARE EXTREMELY CONFUSING FOR SOME OF US SENIORS AND THE WHOLE POINT OF USING TURBOTAX IS BECAUSE THEY HANDLED THESE THINGS. I HAVE HAD TO REPORT RMDs FOR THE LAST 3 YEARS. I HAVE NEVER COME ACROSS THIS PROBLEM BEFORE. SHOULD GO BACK TO THE WAY THEY WERE DONE IN 2023 TAXES.

[JLMcK]

How do you get to the 5329T form in the on-line version?

[DanaB27]

If the entire distribution was applied as towards the total RMD then yes you would select "The entire distribution applied…".  

Or if only part was applied towards the RMD you could select "Some of this distribution…" and enter the RMD amount including the RMD amount for the 3rd not withdrawn account. If you split the RMD from the 3rd account between the 2 other IRA accounts then you would include part of the 3rd RMD with each account on the screen. 

But it might be easier to just answer the entire contribution was applied towards the RMD. The "Additional Retirement Account Smart Worksheet" is just something that TurboTax uses to check that you met your RMD but this will not be sent to the IRS. If you met your RMD for 2024 then Form 5329 will not get filled out and you cannot see it in TurboTax Online when you print your return.

If you do not show a penalty on Form 5329/ Form 5329 isn't include in your return then you answered the screens correctly indicating that you met your RMD for 2024. 

@JLMcK 

@mz14 Yes, if the entire distribution is your RMD then you enter the distribution from box 1 of Form 1099-R and select the "The entire distribution applied…".  

[JLMcK]

If your total gross distribution is the RMD then when the program asks for the amount of RMD, input your gross distribution. You have satisfied the RMD requirement.

[1koilady]

I have 2 rmd's that I took from one account. One had a Dec. 31,2024 deadline. The other an April 1.2025 deadline. I took the total amount from one account and received a 1099 R for that total withdrawal. I did not receive a 1099 R on the second account. Where and how to I put the correct total amount since the instruction say to only put in the amount for the Dec. 31,2024 rmd. What form do I use for the other?

[PatriciaV]

Please clarify if the second distribution was an RMD for 2024 and the date that RMD was paid.

@1koilady 

[fhcotton]

I agree, the 2023 version of TurboTax Deluxe dealt with multiple IRAs correctly and did not calculate a penalty if you used only one to withdraw the total RMD amount!!  A revision is needed!! 

[NIkiPatt]

I am using the Desktop Home & Business and hope the following worked.  I'm sorry to do this so "101" style but wow this one promises to be quite an issue if the IRS decides to dance on the heads of pins...with lots of letter writing down the line.

(1) I took my whole RMD plus additional funds from one of the two retirements accounts I have. (A & B)

(2) I received a 1099-R from account A.

(3) I did not receive a 1099-R from account B. since I took no funds from there

(4) I filled in the amount applying to account A on the window in which said "we need to know the RMD for THIS account only." (which was only 1/4 of the total RMD.)

(5) I clicked "The entire distribution applied to the 2024 RMD"  (Even this phrasing was confusing.  It should have said "The entire distribution applied to or was greater than the 2024 RMD")

(6) I went into form 5329 and filled out ONLY part IX.  Which asked for the RMD amount  from the account for which I received a 1099-R and took the funds and then on the next line asked for the RMD amount due from the account from which I had not received a 1099-$.  . .  I filled in the right amount on the "Distribution" column which covered them both -- zeroing the balance due so I didn't have check "Corrected" at all.

(7) I also filled out the Grand Totals at the bottom of Part IX for what was owed and what was distributed (i.e. no correction needed.)

and left it  at that.

To best honest, after years of doing returns  for myself and others this one is one of the worst "possible to screw up" ones and worries me.  Anybody else have a better solution?

[Elvy Vera]

How do I fix the RMD amount for each IRA distribution. Thanks!

[billjans]

I had the same situation (all the RMD and more for both Accounts A and B was taken only from Account A).  I used the TurboTax Deluxe Version.  At the time I did my taxes back in February, I do not remember if TurboTax had applied all the fixes that may have come later.  In any event, Part IX of the 5329 Form was filled in, I believe, as you describe, but I needed to manually complete Lines 52 and 53 at the bottom of this section, also as you describe (no correction needed).  TurboTax did not detect an error when running the Checker prior to filing.  Hopefully, the same will be the case when the IRS does it checking.

[NIkiPatt]

For Elvy Vera --

Did you get a 1099-R for each account that you withdrew funds from? And did you take the amount of the RMD or more than was due for the RMD for that account?   And last was the total of the RMD's withdrawn from all accounts the same or more than what was due from all  your IRA accounts?

If you don't know what your total RMD is this year there are several calculators online -- AARP has a good one and you can figure it for each account and for the total..