RMD entry

[luthian1]

This seems so simple.  I entered my routinely paid yearly RMD (data from its 1099-R).  It was generated and paid like it should have been in 12/2023.  Turbo tax somehow says "We noticed you had to take out money from a retirement plan early." It speaks of tax penalties.  I am 74 and don't recall anything like this last year.  I am using Turbotax Desktop.  What happened?  What should I do?  Thank you for your time.

[DanaB27]

What is the code in box 7 of Form 1099-R? Please verify your Form 1099-R entry.

[luthian1]

Hi!  My code in block 7 of the 1099-R for 2024 is 7.  There is no other code. The IRA/SEP/SIMPLE is blank.  Thanks for looking at this.

[luthian1]

I'm chiming back in.  Could this be an issue?  I had an RMD last year, a routine withdrawal, but I misplaced the 1099-R and didn't include it in my tax filing in the spring.  I discovered the 1099-R and amended my Turbotax filing in August to include it.  Could this now be confusing the program somehow?  It thinks it sees two RMDs since last April?

[DanaB27]

To confirm, you only have one Form 1099-R entered on the 2024 return. 

It might be best to have a TurboTax ".tax2024" file to look at it. 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.

[luthian1]

Thank you Dana.  I will do that.  It sounds easy to do.  I do have another 1099-R on my return.  That is my pension from the Federal government which sends me a yearly 1099-R for my taxes.  That means I do have two 1099-Rs on my return but the one causing trouble is a mandated RMD and nothing was withdrawn early.  If this is causing the problem, how am i supposed to enter these two1099-Rs?  I'm going to have this issue every year.  Thank you for your help.  I very much appreciate it.

[luthian1]

Token# 104607609-71715135 @DanaB27

[DanaB27 · Accepted solution]

Thank you, I reviewed your return. One of your Form 1099-R is entered with code 1, please verify if that is the correct code shown in box 7. If not, then please edit your entry.

If you indeed have code 1 in box 7 then you can enter then you can enter the amount under “Other” on the “These Situations May Lower Your Tax Bill”. This will remove the 10% early withdrawal penalty. 

@luthian1 

[luthian1]

Thank you, Dana.  I don't see how I did it but I must have entered the wrong code.  It looks fine now.  I'm very grateful.  "Thank you" doesn't seem like enough!