RMD ENTRY PAGE (GETTING MONTHLY PAYMENTS FROM OPM)

[jacksprat8]

On the RMD number entry page, it asks for Rmd due by Dec 31, 2024.  I'm a federal retiree and the RMD is fullfilled by  my monthly payments.  I entered my gross amount income and it came back with something that made even less sense.  I finally entered 0 and it seemed to take that and asked more questions about whether I get regular payments.  I have no clue whether this is the right thing to do as all indications elsewhere tell me to always answer that all payments qualify as RMD. 

Everyone asking about this on the internet believes this is  a bug in the program. Either way, it won't let me finish until I put somethiing in there.  There is not even one clue from turbotax on how to answer this  question and I have now spent 4 hours trying to figure it out.

[MarilynG1]

Neither the IRS nor TurboTax knows what your RMD should be; it's up to you and your plan administrator to handle the RMD distribution properly (as you are doing). 

So, you could answer the question 'What was your RMD?" by entering an amount less than or equal to your total distribution on your 1099-R.  If you enter $0, however, and have only one 1099-R to report, TurboTax will think you didn't take your RMD and generate Form 5329 to assess a penalty. 

If you have more 1099-R's, you could enter $0 for one and the distribution amount for the other.  Just so TurboTax knows you took your RMD.  The IRS allows you to take your RMD from one account, or across several.

It's not a bug in the program, but the wording (or instructions) could be clearer. 

Here's more info on IRS Requirements for RMD's.

[VolvoGirl]

For pensions it's whatever they send you. Say all of it is the RMD. If you have a RMD requirement it will ask you if it is the RMD. Say yes and enter the amount as the RMD amount. The pension doesn't need to calculate any RMD. Anything your pension pays you is considered to be the RMD. Traditional pensions automatically fulfill the rules of an RMD. So just enter the same amount in box 1 for the RMD for each 1099R.

[jacksprat8]

I just entered my annual gross pay to see what would happen. Does the sequence below sound like this is the way to handle the RMD entry?  The first time I did this, it came back with a very strange question. This time it allowed it without a very confusing followup question. (I spent an hour with the snipping tool to show you everything and now I see intuit does not allow pasting. So much for that.)  I'll summarize: 

Next: I clicked that the entire amt was applied.

Next:  yes, I took out the entire remaining amt during the window.

Next:  yes I got reg pmts from this account.

Next:  no, I started getting pmts in a prior yr.

Next:  Yes, the amt in 2A was used as the taxable amt

Am I good to go?  Thanks.

If this is the proper way to handle this, all this could have been handled by a single statement on turbotax:

**(If this is a retirement pension with regular pmts, enter your gross annual income from this account as the RMD.)

[DanaB27 · Accepted solution]

Yes, it seems you are good. You can verify that you do not have Form 5329 part IX with a penalty.

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[jacksprat8]

This did not solve it. Like I said I'm on CSRS Office of Personnel Management federal retirement and get a payment each month. TT generated a 5329-t and put my gross pay under L incorrect early distibutions  and later said it was exception #12.  But something caused tt to generate this false form.  Obviously entering my gross pay is not what it wants or a following question was answered wrong.

Following question:  The entire distrib applied to 2024.

Next question:  Yes the amt in box 2a was used as taxable amt.

How do I enter an RMD that will work?????

[DanaB27]

It would be helpful to have a TurboTax ".tax2024" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Online: 

1. From the left menu select Tax Tools. 
2. Then select Tools below Tax Tools. 
3. A window will pop up which says Tools Center.  
4. On this screen, select Share my file with Agent. 
5. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
6. Reply to this thread with your Token number and add @DanaB27 . This will allow us to open a copy of your return without seeing any personal information.  

The instructions for TurboTax Download: 

1. On your menu bar at the very top, click "Online"
2. Select "Send Tax File to Agent"  
3. Click "Send"
4. The pop-up will have a token number
5. Reply to this thread with your Token number and add @DanaB27 . This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

[Celiasolis]

I believe that answering 0 is correct.  RMDs are taxable income for which you previously took a deferred tax benefit, and now it's time to pay the tax on that benefit.  The pension you receive monthly is reflected on the 1099R and you pay tax on the taxable amount.  So it is not RMD and therefore answer zero is correct.