RMD Calculation for 2022

[kmcsenior]

How does TurboTax calculate RMD for Tax Year 2022 without first knowing the IRA account value for December 31 of 2021? I downloaded my 2022 1099-R from my brokerage but that was all the information about my IRA account that was input to TurboTax. The calculation for 2022 RMD according to TurboTax was MORE than what was calculated by my brokerage and resulted in a 50% tax penalty for the amount of "required" RMD that was not taken. It seems that TurboTax mis-calculated the RMD for 2022. I also used an online RMD calculator for Tax Year 2022 and got the same figure as my brokerage did. Can anyone explain what happened? 

[dmertz]

TurboTax does not calculate RMDs.  TurboTax requires you to determine the amount of your RMDs.

[kmcsenior]

There was no question asked in TurboTax Premiere about RMD. I merely downloaded my 1099-R. When I ran the Smart Check feature it found an "error" and calculated a tax penalty for not withdrawing a sufficient amount based upon the information in my 1099-R. I never input the value of my IRA for December 31, 2021.  

[dmertz]

TurboTax can only determine if you failed to complete your RMD if you have entered the amount that you were required to take, not from any of the details of the Form 1099-R that was entered.  This is instead done in the questions that TurboTax asks after clicking the Continue button on the page that lists the Forms 1099-R that you have entered.

Perhaps the penalty that you are seeing is a tax underpayment penalty for having an insufficient amount of taxes withheld throughout the year and not anything specific to the entry of the Form 1099-R that reports your RMD.

If the penalty is appearing on Form 5329 1099-R and you completed all of your RMDs, try simply deleting the Form 5329 to eliminate any extraneous information that you might have entered.  If the Form 5329 automatically reappears, examine the Form 5329 to see the details of the penalty that is appearing on that form.

[JamesG1]

Report the RMD at the screen How much of the $XX was a RMD after entering the IRS form 1099-R.

Review IRS form 1099-R by following these steps:

• Down the left side of the screen, click on Federal.
• Down the left side of the screen, click on Wages & Income.
• Scroll down to IRA, 401(K), Pension plan withdrawals (1099-R).  Click Edit / Add to the right.
• At the screen Here's your 1099-R, click Edit to the right of the 1099-R to be reviewed.

@kmcsenior