RMDs and two accounts

[exchecker]

We continue to be perplexed by how to enter the following RMDs are shown when there are two custodians.

Two IRA accounts.  A calculates its RMD to be $900, B calculates $9100. A total of $10,000.

Amount taken from A is $0.  The amount taken from B for that purpose (an error) is $11,000

No 1099-R is sent from A, but B indicates the withdrawal on the 1099-R of $11,000

How do we answer the questions provided in the desktop interview regarding B, the one that sent the 1099-R?  The "Required" RMD for B alone of $9100 is smaller than the actual withdrawal from the B's account. Do we show $10,000 (the actual combined calculated RMD) or $11,000 (the actual amount withdrawn)?

How does the worksheet in Form 5329, Part IX, fit into the reporting in this case?  Is this where the custodian's data goes that didn't issue a 1099-R?  If true, why isn't this mentioned during the interview process?  What's the purpose of that worksheet, and where do those numbers get reported or carried forward?

It seems that a distinction between the calculated RMD and the actual amount withdrawn would be helpful. 

Thanks for any clarification.

[ReneV4]

Since you satisfied your total RMD ($10,000) using only one of your accounts (Account B), you should answer the interview questions as follows to avoid the "missed RMD" loop:

First, I recommend deleting the Form 1099-R and the Form 5329:

1. In Forms Mode, Click on Form 1099-R and select Delete Form at the bottom left, then click Form 5329 and Delete Form

When entering the information for the account that distributed the money (Account B:(

1. When you reach, "Let's get more information about your Required Minimum Distribution (RMD)", enter the amount of your RMD ($10,000) that was due by December 31, 2025, Continue
2. On the next screen, "How much of this distribution applied to your December 31, 2025 RMD?", select "Some of the distribution applied...($10,000)", Continue
3. When you reach, "Review your 1099-R summary, Continue (not the pencil)
4. When you reach, "Let's go over any required minimum distributions (RMD), Continue (not the pencil)

Since you took nothing from Account A, you do not need to enter a 1099-R for it.

You asked how Form 5329 fits into this. If you do this correctly, Form 5329 will not be needed at all because it is only generated if there is a penalty to pay or a waiver to request.

[exchecker]

Thanks so much, ReneV4, for these steps.  I've done the deletions you suggest.  I've re-created the 1099-R, entered 10000.00 in Boxes 1 and 2, completed the other relevant boxes as before.  

Then, at the "How much of this distribution applied to your December 31, 2025 RMD?", I select "Some of this distribution applied to the December 31, 2025 RMD, enter 10000.00, then it turns red and says "RMD amount shouldn't be greater than the total distribution." and I cannot proceed or go back.

But - if I select "The entire distribution applied to the December 31, 2025 RMD", the error clears and I can Continue.

Ain't that weird!  The tax due seems to calculate to what we'd expect, and in the Forms view, I don't see that a Form 5329 has been created.

Is this perhaps some odd kind of rounding error between the amounts in the two boxes, or something else?

And is selecting "The entire distribution..." an appropriate solution?

Thanks

[ReneV4 · Accepted solution]

Very interesting. Yes. It is fine if you select, "The entire distribution..." was your RMD.