RMD

[Waynea1]

I have 2 IRA accounts that more than satisfied my RMD.  I've entered both 1099R's (just one would satisfy the RMD) and form 5329-T doesn't recognize them.  I put in the RMD from my financial account, who says I met it 100%, and entered the 2 1099R's and said to apply both to the RMD.  However form 5329-T show a penalty.

   What can I do?  How do I fix this?  

[MinhT1 · Accepted solution]

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.

[Waynea1]

Thanks!  This worked and dropped the penalty.