Roth IRA BDA

[agent414]

I inherited a Roth IRA and so now I have a Roth IRA BDA.  I am taking RMD (required minimum distribution) and in my situation my RMD per year is based on my life expentency.  I know that this is not taxed.  Over the past few years I have had no problem with desktopTurboTax.

This year (tax year 2024), I am getting an error that needs to be corrected on the 1099-R form (worksheet).  It is asking me to enter a "Required RMD Amount".  However, when I enter this, as well as entering the "Amount Distributed in  2024" (which is the same amount), the worksheet then wants me to answer the question,"If this is a distribution from a traditional IRA or qualified retirement plan ....".  However, it is neither - it is a Roth plan.  So I'm not sure how to answer the questions.  Easy step does not address this issue.

Thanks in advance for any suggestions.

[fanfare]

I guess you are saying "neither" is not an option.

what are the codes in Box 7 of 1099-R?

@agent414 

[agent414]

Hi fanare,

The code in Box 7 is T.

The IRA/SEP/SIMPLE box is not checked.

[agent414]

Hi fanfare,

And "neither" is not an option.

[MaryK4]

The interview in TurboTax has the option: "None of these plans failed to withdraw the RMD".

The RMD Excess Accumulation Worksheet D. has choices:  IRA, 403(b), or Other.  IRA should be checked.  

@agent414 

[agent414]

Hi MaryK4,

Yes, I answered the interview as you described and the RMD Excess Accumulation Worksheet D did have IRA checked.

The problem was that when the program checked my return for errors prior to filing, it was requiring that I fill out the RMD Excess Accumulation Worksheet A (Required RMD amount).  When I entered this number, the program was then requiring me to answer the question immediately above the RMD Excess Accumulation Worksheet which asked "If this is a distribution from a traditional IRA or qualified retirement plan, and ....".  The problem is that the distribution was from an inherited Roth IRA, so the question does not apply and I was stuck - the program was making me answer a question that did not apply.  Without answering it, I could not file my taxes.  In any event, I ended up putting a 0 in the RMD Excess Accumulation Worksheet A (Required RMD amount) even though I did have an RMD.  I know my RMD was correct, but by putting a zero in that field, the worksheet ignored the questions about RMD.  It did not affect my bottom line taxes.  Maybe subsequent TurboTax updates addressed this issue - I do not know.