rmd withdrawal issues

Forum|Forum|1 year ago
March 3, 2025
3 replies
13 views

Having the same RMD issues as everone else. Have tried all the above work arounds and only one I found worked. Here's the link:

https://ttlc.intuit.com/community/retirement/discussion/multiple-ira-rmd-and-actually-distrib[product%20key%20removed]ts-are-not-properly-calculated/00/3462493

Good luck!

VolvoGirl

Level 15

You need to go back through the 1099R entries and revisit all the answers. There was an update on Feb 20, 2025 that fixed the RMD problems. So if you have the Desktop program be sure to update it. The questions have changed so your prior answers won’t be right especially if you answered them with a work around to make them come out right. I would delete the 1099Rs and enter them again manually. That usually fixes it and resets the questions. Deleting has been fixing it for others.

bruce80Author

Level 2

I tried deleting all 1099R's, updating software, and reentering all, several times, but still didn't work. The link I sent in my first post was the only fix that worked.

AmyC

Level 15

For the box 7 code 4D - this worked for me today - I chose the 403b and it did ask about my inherited non-qualified annuity.. An inherited nonqualified annuity does not have RMD

Follow these steps:

Your 1099R should have box 7 with a code D for nonqualified annuity and code 4 for inherited. Let's go through the steps:

Open your return to the federal income
Select the 1099-R and edit
taxable amount -if box 2a has no amount or needs to be determined, the program will ask about cost basis. If 2a has a number and you select to use it, the program will not ask about the basis.
continue to Enter the form
No Public Safety Officer
Age of person - before of after Jan 1, 1952.
select no or yes
select 403b plan
RMD, enter zero
continue
@TerriLa

The program adds a penalty when you haven't taken the full RMD. The question is, did you take the full RMD?

If yes, return to the screen where you entered the form.
- RMD = distribution - You can mark the RMD is the same amount and all of it went to RMD, there is no penalty.
- If the RMD is less than what you took, enter the smaller RMD, enter that NOT all of it went to RMD but $XX = RMD did.
For example: $1000 distribution with a $600 RMD. Enter not all of it but $600 toward RMD. Program is happy. You can't say all of it and have a lower RMD. Review your answers.

If no, you did not take the full RMD, you would have a penalty. @bruce80

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dshafer69

Level 2

Same issue as last year. You would think that after MORE THAN A YEAR THEY WOULD FIX THE PROBLEM.

MarilynG

Level 15

If you could be more specific about your issue, we'll try to help.

If you have 'Taxable Amount Not Determined' TurboTax asks if the amount in Box 1 was taxable previously. Unless you know that after-tax contributions were made, it's all taxable. If you inherited an IRA, the plan would know if after-tax contributions were made and that would show in Box 5.

If your issue is RMD, when you enter your 1099-R, enter the Box 1 amount for 'RMD' and 'entire distribution is RMD'. Neither the IRS or TurboTax knows what your RMD should be. The IRS expects your plan administrator to insure that you take your RMD each year, so a penalty is rare and usually an exception is made.

@dshafer69

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PeterO26

Level 2

I've been a TT user for 20+ years. The RMD 2025 is a TT programming issue and they need to step up, own the RMD issue problem and stop ignoring their problem. One comment I read is looking good to me, spend $36 and purchase H&R Block tax program. It works with no RMD run around. Its also cheaper than spending $60 for a TT expert to fix TT poor RMD Code.

I am very disappointed with TT for ignoring and not fix this obvious problem. How many times does a user have to delete and reenter their 1099R.

PeterO26

Level 2

I should have added to my initial post. There is a screen with three RDM OPTIONS you can choose. First was stating that he's you did not take enough RDM. But the third is to request an exception and waver from the IRS. There is a very small box you can enter your reason. I am using this explaining mine and my wife's RMD are correct having verified with my financial institution and explaining this is a known Turbo Tax coding problem that they are not addressing or providing a fix. I stand by my 1099Rs as correct. I am confident in my documentation. The IRS can review and can honor the request. The penalty TT calculates is $559. Shame on Turbo Tax.