Two taxable 1099-R forms on the same money

[n391deltacharlie]

I moved IRA money from one company to another.  This year I have to take my RMD.  Both companies sent me a 1099-R listing the RMD as a taxable amount - thus I'm taxed twice.  I asked both companies to issue a corrected 1099-R and they both refused believing they did the right thing.  I tried to call the IRS to find out how to resolve this dilemma, but they said their lines were too busy to answer my question and thus hung up on me.  How should i resolve this problem in Turbotax?  Should i list a need to correct the 1099-R for one of these funds or both?  The second fund was the one I used to make QCDs for the entire RMD amount.  

[ReneV4]

It appears that you have a non-taxable "rollover", as well as your required minimum distribution (RMD) to enter in TurboTax.

To clarify, your Form 1099-R will not typically list your RMD. It will list your total distribution from your account.

Additionally, if you moved money from one company to another, that would typically be considered a "rollover" and not a taxable distribution.

Let's address your "rollover" first:

Review your Form 1099-Rs, looking for Box 7, Code G (non-Roth) or Code H. If you see either of these codes in Box 7 of your Form, this is your "rollover" Form 1099-R.

For your normal distribution Form 1099-R, look for Box 7, Code 7 (non-Roth), or Code B (Roth)

To report your Form 1099-R with Code G/H that reflects your non-taxable transfer of funds "rollover" in TurboTax, do the following:

1. Go to Wages & Income
2. Scroll down to Retirement Plans and Social Security and click the down arrow
3. Select IRA, 401(k)...(1099-R) and click Start
4. Click Add a 1099-R
5. Answer the questions regarding the 1099-R, ensuring you complete each box correctly
6. Click on Continue
7. On the, "Tell us if you moved the money through a rollover or conversion", select, "I rolled over...to another retirement account"
8. On the, "Did you roll over all of the $ (Box 1) to another retirement account?" select, "Yes, I rolled over $...to a retirement account"

Now, let's address how to report your Form 1099-R, Code 7/B  that reflects your normal distribution (including your RMD:(

1. Follow steps 1-6 above
2. Continue through until you reach, "Let's get more information about your Required Minimum Distribution (RMD)", enter your RMD
3. How much of the distribution applied to your December 31, 2025 RMD? Choose whether entire, or "some of this distribution applied..."
4. You will reach "Review your 1099-R summary", press Continue (not the pencil) and additional questions will generate for you to answer
5. When you reach "Let's go over any required minimum distributions (RMD)", Continue (not the pencil)

[dmertz]

It sounds like you moved the IRA by distribution and rollover, not by nonreportable trustee-to-trustee transfer (or at least that's what the original IRA custodian is claiming by issuing a Form 1099-R).  If that's the case, the RMD was satisfied by the distribution from the original account and only the amount distributed beyond the RMD was eligible for rollover.  If the entire amount was rolled over, the portion that was RMD must be treated as an excess contribution to the new IRA to the extent that it exceeds the amount that you are eligible to have contributed as an ordinary IRA contribution.  With the RMD already satisfied by the distribution from the original IRA, the distribution from the second IRA was an extra distribution (or actually should have been distributed as a  nontaxable return of contribution, but the new IRA custodian would have no idea that that was necessary unless you requested such a distribution.)