Turning 73 this year (2025) I took the required RMDs in 2025 and received the anticipated 1099-R.
Within T.T. the instructions read:
"Do not include RMDs which are due on April 1. RMDs for the first year you're required to take a distribution are generally due on April 1."
Since I've taken the RMDs in 2025, if I don't report them now it would seem that next year's return, 2026, will be expected to have two 1099-Rs reporting RMDs...one for the 2025 tax year but taken before 1 Apr 2026, and a second for the 2026 tax year. BUT, I will only receive one 1099-R in 2026, and I won't receive credit for these RMDs that I actually did perform in 2025.
What it the proper way to handle this in T.T?
Thanks for your insight.
The text in TurboTax needs correcting.
Any distribution taken in 2025 from your IRA has to be shown on your 2025 tax return.
What exactly do you mean when you say the Turbo Tax text needs correcting? What is the taxpayer supposed to do?
@PrivateGuy You will need to report the RMD you removed in 2025 on your 2025 tax return. Even though you aren't required to take any RMD until April 1 of the following year, you did the wise thing and took your 1st RMD in the year you turned 73. Your 1099-R for this withdrawal would get reported in TurboTax for 2025 and, if you took the full amount of your RMD (or more than your RMD), you will avoid the 25% penalty for not removing enough, If you had waited until April 1, 2026 to withdraw it, this would be your RMD for 2025 and you would then need to take another RMD for 2026 by December 31, 2026 to satisfy your RMD for this year. But you would then have also been required to report both RMDs on your 2026 return, potentially causing you to pay more in taxes than you would have by using your strategy of removing your 1st RMD in the year you turned 73.