Report RMD from multiple companies distributed from one company

[Hubie]

I pull RMD from one account to cover two accounts. Where do these amounts get recorded on the IRS forms?

To illustrate:

Payer 1 RMD amount is $5,000  (no 1099-R)

Payer 2 RMD amount is 25,000

RMD distributed from Payer 2 = $30,000 as shown on 1099-R

What is the correct entry within TurboTax?

[MinhT1]

An IRA owner must calculate the RMD separately for each IRA that he or she owns, but can withdraw the total amount from one or more of the IRAs. 

If you are sure that you have satisfied all RMD requirements, then in TurboTax, on each form 1099-R for RMD withdrawals, answer that The entire distribution was an RMD then on the following page, to the question What is the RMD for your account? enter the amount of the distribution from that IRA account.

By doing this, you are telling TurboTax that all RMDs are satisfied and TurboTax will not calculate any penalty. The information you entered in TurboTax is to enable TurboTax to calculate any penalty where applicable, and is not reported to the IRS.

Similarly, a 403(b) contract owner must calculate the RMD separately for each 403(b) contract that he or she owns, but can take the total amount from one or more of the 403(b) contracts.

However, RMDs required from other types of retirement plans, such as 401(k) and 457(b) plans have to be taken separately from each of those plan accounts.

Please read this IRS FAQ for more information.

[Hubie]

I did not receive a 1099-R from Payer 1, perhaps because I made no withdrawal. Is there a way to handle that?

[MinhT1 · Accepted solution]

No need to enter two 1099-Rs. 

If you only have one 1099-R, answer on that 1099-R that The entire distribution was an RMD then on the following page, to the question What is the RMD for your account? enter the amount of the distribution from that IRA account.

There will be no penalty.

[Hubie · Accepted solution]

While the exact steps didn't show, I understood the process intended and was able to complete it.

Thanks.

[dhchase1111]

The current statement in TurboTax is: "Note: Do not include the RMD for other retirement accounts you may have. RMDs for other accounts should be entered separately." 

This should be modified to include the note "When an RMD is taken from a single account to satisfy the withdrawals required from two or more IRAs, enter the total amount of all RMDs in the box above.