RMD withdrawel issue

[dshafer]

I have 2 RMDs from 2 1099-Rs. I'm entering the separate RMD amounts for each 1099-R. I took $360 from the account that had an RMD of $2,500, and took $5,200 from the account that had an RMD of $3,000 but Turbotax is telling me I have to pay taxes and penalty.

[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.

[dshafer]

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

[rivers404]

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

[VolvoGirl]

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.  

[dshafer]

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?

[dshafer]

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

[VolvoGirl]

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.  

[dshafer]

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. 

[VolvoGirl]

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.  

[dshafer]

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.

[dshafer]

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.

[rivers404]

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 

[DanaB27]

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 

[tcsmith22]

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[produc... 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?"