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Something changedin TurboTax with the RMD from my MIL's IRA Form 5329-T

We have entered everything correctly on my mother-in-law's return - birthdate, address, 1099s etc.  Box 7 = 7 and IRA/SEP/SIMPLE is checked.  But there must be some box or question that needs to be checked, unchecked or answered because she is getting hit with a penalty tax.  It says she received her RMD in/out of the corrected period and levied a 25% tax against her small RMD.   Her RMD was taken before 12.31.2024.  There is an error mark on form 5329-T but we don't know how to fix it since she took her RMD before the end of the year.  I tried deleting form 5329-T but the penalty tax remained.  Help please.

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1 Reply
SusanY1
Expert Alumni

Something changedin TurboTax with the RMD from my MIL's IRA Form 5329-T

Please return to the entry for her 1099-R and walk back through the interview.  When it asks "how much of this distribution is an RMD" mark the question "all of it" so that the penalty will not calculate, since she took her required distribution timely.  

If this doesn't clear the error, let us know and we can troubleshoot further. 

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