RMD Split

[smith625461]

My wife has two IRA's which we had RMD withdrawals in 2024. The total RMD amount was $1303.36 split between the two accounts ($1129.54 & & $173.82, respectively). We withdrew $708.08 out of the first account and $611.05 out of the second account for a total of $1319.13. This is the first time we had RMD's and for some reason Turbo Tax is not picking up the fact that we exceeded the total required withdrawal ($1303.36 Req.- $1319.13 Act.). It is looking at the first account ($1129.54 Req.- $708.08 Act.) as an under withdrawal of $421.46 and hitting us with a 25% penalty tax (~$106)! In other words, the Turbo Tax program is not picking up the overage we took on the second account ($173.82 -$611.05 = $437.23). There has to be something I have input incorrectly because, as a total, we have withdrawn $15.77 more than the RMD amount!! Any help would be appreciated!!!

[MinhT1]

An IRA owner must calculate the RMD separately for each IRA that he or she owns, but can withdraw the total amount from one or more of the IRAs. 

If you are sure that you have satisfied all RMD requirements, then in TurboTax, on each form 1099-R for RMD withdrawals, answer that The entire distribution was an RMD then on the following page, to the question What is the RMD for your account? enter the amount of the distribution from that IRA account.

By doing this, you are telling TurboTax that all RMDs are satisfied and TurboTax will not calculate any penalty. The information you entered in TurboTax is to enable TurboTax to calculate any penalty where applicable, and is not reported to the IRS.

Similarly, a 403(b) contract owner must calculate the RMD separately for each 403(b) contract that he or she owns, but can take the total amount from one or more of the 403(b) contracts.

However, RMDs required from other types of retirement plans, such as 401(k) and 457(b) plans have to be taken separately from each of those plan accounts.

Please read this IRS FAQ for more information.

[smith625461]

Worked perfectly!!! Thanks, My Friend!!!