Reporting RMD on inherited Roth IRA

To correct the tax liability, you will need to complete specific "Inherited" and "Roth" sections to show that the distribution is non-taxable.

 

First,

 

1. Review your Form 1099-R from Charles Schwab, checking Box 2a to ensure it is zero
2. Next, check Box 7 for the distribution Code Q or Code T
3. If it is Code Q, TurboTax should automatically know it's tax free
4. If it is Code T, TurboTax will ask you follow-up questions related to the 5-Year Rule before it removes the tax

 

Next, 

 

1. Return to your 1099-R entry by clicking Review to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R) in the Federal Wages & Income
2. Click on the pencil to the right of the 1099-R
3. Click Continue through the entries you've made
4. Ensure you selected, I inherited this IRA, and that you have identified it as a Roth IRA, then Continue
5. Ensure you answer Yes when asked if the Roth IRA was opened before 2021, Continue
6. Next, "Let's get more information about your RMD", enter the distribution amount pertaining to the RMD, Continue
7. Next, select, Some of the distribution applied to the December 31, 2025 RMD (and enter the RMD amount), Continue
8. Next, in the Review your 1099-R summary, Continue (not the pencil)
9. Continue answering the questions
10. Next, when you see "Let's go over any required minimum distributions (RMD), select Continue (not the pencil)

Hello there ReneV4,  Very much appreciate your step by step instructions.  To report back on my attempts to apply them: 

 

1)  Checked both 1099-R forms for my two inherited IRA accounts, and Box 2a is blank on both, and both have the code Q in box 7.   These forms (as well as the other 1099-R that I received from Schwab) were both imported into Turbotax and so the information was  automatically populated. 

 

2)  When I review the 1099-R information for each of those entry (by clicking on the pencil to edit) I have indicated that they are both Roth IRAs, that they were inherited, and then it asked me for the name of the person I inherited it from, and  I entered the name of my mother and the year of her death (2012).

 

3) However, beyond that, there were no questions asking if the Roth was opened before 2021, nor was there any screen saying "Let's get more information about your RMD" or any place to list the amount of the RMD.  Therefore, I was not able to go beyond step 5 of your instructions.  So did I miss something?   

Hello @ReneV4 , I was still hoping that you -- or another expert at Turbotax -- could respond to my reply from a few days ago about the fact that I was not able to fully implement your instructions, because my TT program does not go beyond step 5 in your instructions, and does not ask me any questions about the RMD.  It simply asks me to check the box to indicate it was inherited Roth IRA, and then asks for my mother's name and the year of her death.   It does not track with your descriptions of the screens that are supposed to follow that question. I am not sure how to proceed.  Thank you for any help you can provide.