RMD withrawal and Direct Rollerover the remainder to another brokerage

[davidsu06]

Assuming I had an IRA account with the following situations:

1. In January 2024 I made $2,000 in qualified charitable donations; in May I rolled over the remaining $8,000 to another brokerage firm, leaving the balance 0.

2. The 1099-R I got: Line 1 $10,000, line 2a $10, 000,  and  2b taxable amount jot determined.

This is what I should do with TurboTax:

1. Report a total withdrawal of $10,000,

2. Report required RMD of $0.

3. When asked what I did with $10,000, I would say $8,000 rollover, $2000 RMD for donation.

Is this correct or there is a better way? 

From Confused

[DanaB27]

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. On the "Do any of these situations apply to you?" screen select "I transferred all or part of this money directly to charity"
5. 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 ($2,000).
6. Enter the RMD amount for this account ($2,000) on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
7. Enter how much your transferred to charity $2,000
8. On the "Tell us if you moved the money through a rollover or conversion" screen select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
9. On the next screen select "No, I rolled over less than $XXX" and enter $8,000 as rolled over
10. On the "Review your 1099-R info" screen click "Continue"
11. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD"

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 ($2,000)
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 ($2,000)
5. Answer the "Transfer to Charity Screen"
6. On the “What Did You Do With The Money” and choose “I moved it to another retirement account”
7. Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the rolled over amount ($8,000) next to "Amount rolled over to another (or back to the same) retirement account".
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 "None of these plans failed to withdraw the RMD"

[davidsu06]

Thanks for your quick reply. I did it as you suggested. However, I forgot that the required RMD based on the 2023 yearend balance is much more than the $2,000 I took out, and an extra withdrawal from another account made up the shortfall. To recap 1. I withdrew $2,000 RMD (for donation); 2. I rolled over $8,000 out; 3. 1099R reported I withdrew $10,000; 4. the true required RMD was more than $2,000, say $4,000.

Back to your suggestion on step 3 of desktop TT the required RMD shall I enter $4,000 instead of $2,000? 

All these complications were caused by the assumption that I could withdraw any amount from any IRA account as long as the total withdrawal covers the total required RMD.

Thank again.

[DanaB27]

Yes, you can take all of you IRA RMDs from any IRA. Please see Can an account owner just take a RMD from one account for additional information.

Yes, you would enter $4,000 for step 3 RMD for this account.

To confirm, you have another 1099-R that covers the rest of the RMD? Here you would add the $2,000 RMD missing from the other IRA to step 4. So step 4 for the second 1099-R would be the RMD for this IRA plus the $2,000 RMD from the first IRA.

[davidsu06]

No, you misunderstood my questions. I found another issue that Turbo Tax arbitary misclassify 1099-R as RMD for IRA or as pendsion. I will raise this issue else wher. I bet this should had been raised by others.

Thanks anyway.