RMD withdrawel issue

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.

You keep repeating the same thing, but it DOES NOT WORK.

I am having the same issue.  One person told me to make sure I click "entire distribution is an RMD" on each 1099 entry which I did but still have the problem.  There is an error in Turbo Tax

When it asks about the RMD it is only asking for that one 1099R you are entering. You need to enter the amount from box 1 on that single 1099R for the RMD, not the total RMD for all and even if it is more or less than the total.  So for each 1099R say it was all the RMD and enter 360 for the RMD on that one and the 5,200 on the other one.  

I am entering each account information individually, and NOT ADDING ANYTHING TOGETHER.  TT in not recognizing the excess withdrawal from the second account to cover the first account's remaining RMD.  When will TT recognize that there is a software problem and fix it?  Am I going to have to purchase another company's software so that I can file my taxes?

And they seem to be refusing to admit that there is a problem and fix it.

I’ll try again.  When you enter the 1099R for the account that had a 2,500 RMD say yes it is for the full RMD but say the RMD was only 360.

Then for the other one with the 3,000 RMD say it was the full RMD and say the full RMD was 5,200.  

IF I follow your recommendation, I would be filing a fraudulent tax return as the information about the RMDs is NOT TRUE.

You are suggesting that I file a fraudulent  tax return instead of TT fixing the problem. 

The RMD details don’t get sent to the IRS.  They don’t need to know you spread the RMD over several accounts.  As long as you know you took the total RMD out it’s ok.  

While that MAY work as a work-around, it is NOT a solution to the problem that TT seems to be unwilling to fix.  I will remember this when I  purchase my next tax software.  I have saved the emails and will be forwarding them to the IRS.

While the details are not included in my tax filings, that information is sent to the IRS by the broker and will create a red flag.

Even when I’m declaring I took full RMD across all IRAs TT is calculating a penalty because of this issue. I had another RMD issue two years ago with TT, but I’ve never had such total incompetence with support and resolution. I’ll never use TT again 

The RMD section has been updated please go back to your 1099-R entry and review the follow-up questions.

Please follow these steps in TurboTax Online:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. Continue until "How much of the $XXXXX was a RMD?" screen and select "Only part of this distribution was a RMD" and enter the amount of RMD /or select "The entire distribution was an RMD" (if this distribution includes RMD for other IRA accounts then you included the amount here)
5. Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
6. On the "Review your 1099-R info" screen click "Continue"
7. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024, otherwise select what is applicable. 

In TurboTax Desktop:

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R” and enter your 1099-R
3. On the "Required Minimum Distribution" screen enter RMD for this account 
4. On the "How much of This Distribution Applied to your December 31, 2024 RMD" select "Some of this distribution…" and enter the RMD amount / or select "The entire distribution applied…"  (if this distribution includes RMD for other IRA accounts then you included the amount here)
5. On the "Your 1099-R Entries" screen click "Continue"
6. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024, otherwise select what is applicable. 

@rivers404 

@dshafer 

There appears to be an issue with TurboTax calculating RMD for each distribution in isolation, rather than in aggregate as IRS rules allow. This post: https://ttlc.intuit.com/community/retirement/discussion/multiple-ira-rmd-and-actually-distrib[product key removed]ts-are-not-properly-calculated/00/3462493 says, "Our programmers are currently working to improve the RMD section experience.  Be sure to sign up for email updates here: Why am I getting an RMD distribution amount error?"

They actually are working on it.  They opened an issue with their developers about a week before you (and I) discovered the issue: 

https://ttlc.intuit.com/community/retirement/discussion/multiple-ira-rmd-and-actually-distrib[product key removed]ts-are-not-properly-calculated/00/3462493 says, "Our programmers are currently working to improve the RMD section experience.  Be sure to sign up for email updates here: Why am I getting an RMD distribution amount error?"

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.

I have followed the instructions.  After entering the RMD due on 12/31/2024 and indicated the entire distribution applied to 12/31/2024. there is still a penalty. Please advise how to resolve this issue.

Thanks. 

Please try delete the Form 1099-R and reenter it. If you are using TurboTax Online please delete the cookies and clear the cache before adding the Form 1099-R again.

If you are still having issues, is this an inherited IRA?

@Lenyi  

TT is desk top version. this is not inherited. 

I entered the gross distribution and entered the rmd due on 12/31/2024 and the shows tax due even selecting the entire distribution still shows tax due.  TT asked if we plan to withdraw the amount during correction window? The amount already distributed.

After reviewing the 5329-T form. There could be issue with the distribution code.  My 1099R form distribution code is 7D (annuity payments...) . When using 7D, there is form 5329-T and under other qual. plan line does not show the distribution amount and shows undistributed RMD amount.  This I compared to the previous year TT the same company 1099R, it does not have this issue and didn't have form 5329-T.

FYI if the distribution code is 7 without selecting D (annuity payments..) then there is not tax due and does not have form 5329T.

Please advise how to fix this issue.

Thanks.

Yes, there is an issue when entering a Form 1099-R with codes 7D. Please see Why am I getting an error when entering Form 1099-R box 7 code 7D? to sign up for updates. Thank you for your patience.

@Lenyi 

I have 3 IRA accounts.

One I took the whole required minimum distribution.

Second is an Annuity and I took 2x the minimum distribution.

Third I took NO RMD distribution and the Annuity RMD will more than cover this.

SO WHAT DO I DO??
Desktop Premier only gives me a Penalty.

I WAS a long-time user of TT; however, the lack of a disk, buggy software, and the continued RMD issues this is my LAST YER.  H & R for me next year. 

Please follow these steps:

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R” and enter your first 1099-R
3. On the "Required Minimum Distribution" screen enter RMD for this account 
4. On the "How much of This Distribution Applied to your December 31, 2024 RMD" screen select "The entire distribution applied…"  / or select "Some of this distribution…" and enter the RMD amount 
5. On the "Your 1099-R Entries" screen add the second 1099-R for the annuity
6. On the "Required Minimum Distribution" screen enter RMD for this account 
7. On the "How much of This Distribution Applied to your December 31, 2024 RMD" screen select "The entire distribution applied…"  / or select "Some of this distribution…" and enter the RMD amount (if this distribution includes RMD for other IRA accounts then you included the amount here)
8. On the "Your 1099-R Entries" screen click "Continue"
9. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "An IRA..."
10. On the "Total RMD for all other IRAs" screen enter the RMD from your other IRAs (where you didn't take a distribution from).

@Milo66