TDA trans'ed to Schwab in 2024.I have 2 1099R's, one from each custodian. I split my RMD betwTDA&Schwab. TT asked required RMD for ea. That overstates RMD. How to enter?

[jjcylk]

(Made up numbers)I took an RMD of $1000 under TDA & $2000 under Schwab. The EOY statements each say I was required to take $3000, which adds up to $6,000. both portions say I under distributed my RMD. What happens when a taxpayer moves from one custodian to a second?

[SusanY1]

If the "real" RMD is $3,000, then use that number.  Since each custodian can't know about the existence of any other IRAs that may be subject to RMD, they typically will provide the calculation for the funds in house at whatever time they run and share their calculations.  

The actual RMD is based on the adjusted market value as of the prior December 31 of all accounts. 

[jjcylk]

Maybe I am not being clear. I started the year as a TDA client. Schwab bought out TDA in 2023 and did not migrate my account until April 10, 2024. TDA issued a 1099R that showed the distributions between 1/1/2024 till 4/10/2024; and Schwab also issued a 1099R that showed the money distributed from 4/10/2024 till 12/31/2024. The required RMD was for 12/31/2024 year end value. Both TDA & Schwab are for the same amount because they are basically the same IRA account but my required distribution should not be double.

[SusanY1]

Your required distribution isn't double.  Are you seeing the double on statements from your brokerage firms or somewhere in the tax return preparation process in TurboTax?  

 

[VolvoGirl]

Don’t worry about the total RMD being double.  That does t go anywhere.  Turbo Tax changed this year. When it asks about the RMD it is only asking for that one 1099R you are entering. You need to enter the amount from box 1 on that single 1099R for the RMD, not the total RMD for all and even if it is more or less than the total.

[jjcylk]

After you fill out the 1099R for TDA, the 5th following screen asked how much  was required distribution. This is part of the 1099R worksheet form; in the first outlined box on the worksheet form. You find that number from the year end account statement from each custodian. TDA didn't exist at year end because it was purchased by Schwab but the last statement for TDA from 4/30/2024 showed I had an RMD amount exceeding the amount I took for distributions from 1/1/2024 to 4/10/2024.

As of 4/10/2024 the IRA from TDA was transferred to Schwab. I took distributions from Schwab. The YE statement from Schwab showed the same required RMD as the TDA Statement because it refers back to the same TDA account value. The distributions from Schwab do not equal the that RMD figure.

My total distributions (TDA + SCHWAB) equals the RMD required.

This problem would also exist if I moved my IRA from custodian #1 to custodian #2 mid-year.

I tried to take screen shots but I could not paste here in the answer.

[jjcylk]

I see the RMD doubled in TurboTax because each 1099R you enter requires you to put in the RMD from the custodian of the 1099R

[jjcylk]

That can't be correct because then my Distribution would always equal the RMD. I would never exceed or go under. If my RMD was 5K and i wanted to transfer another 5K over to a Roth, your answer would never allow me to do that.

[jjcylk]

no more thoughts on this dilemma?

[jjcylk]

I want to thank you for replying but I don't believe anyone answered the question on what to answer for for 2 1099's for basically the same IRA. I can't believe that I am the first person to have this issue. Maybe Intuit just wants me to pay an additional fee. Maybe Intuit should tell me that instead of ignoring me. Just another reason not to be satisfied with Schwab, and now I include Intuit. I'll be sure to include this in my evaluation when I file.

[VolvoGirl · Accepted solution]

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@jjcylk wrote:

That can't be correct because then my Distribution would always equal the RMD. I would never exceed or go under. If my RMD was 5K and i wanted to transfer another 5K over to a Roth, your answer would never allow me to do that.

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   If you transfer to a ROTH you would need to enter another 1099R for it.  If it was included on a 1099R with the RMD you would have to split up the 1099R into 2.   And  yes in Turbo Tax this year you have to answer that each 1099R was the full RMD and was the distribution on that single 1099R.  Turbo Tax changed the questions and everyone is messed up.  There are lots of posts complaining, you are not the only one.  Most of the forum questions are for the RMD.  

[fanfare]

In your situation, enter one of the 1099-Rs and toss the other one.

Enter the correct amount for your RMD for 2024 in Box 1.

This is a problem caused by TurboTax.

@jjcylk .

[jjcylk]

your answer now makes sense...this RMD questioning threw me

[jjcylk]

aren't all 1099R sent to the IRS to be matched to your return. I had an issue long ago where I abbreviated names and then the info that the IRS had didn't match. They claimed I overstated my income & understated income by the same amount and gasve me a "wash"

[VolvoGirl]

I think that answer is wrong.  You need to enter both 1099R forms unless they are for the same distribution.   Didn't you say you took a distribution from each custodian?  How much is the RMD you were suppose to take on the 12/31/23 account balance?  So you took some of it from the TDA account and the rest from Schwab?  

Don't worry about the RMD showing double.  The IRS doesn't get that info or know what your RMD should be.  You have to enter each 1099R.  When it asks about the RMD it is only asking for that one 1099R. You need to enter the amount in box 1 on that single 1099R for the RMD, not the total RMD for all. Even if they would add up to more or less.

So for your example...was $3,000 the total RMD you needed to take?  

So for the TDA 1099R you enter the $1,000  amount in box 1 and say yes it was the full RMD and enter just that $1,000 amount as the RMD amount.  Then on the Schwab 1099R $2,000 you say yes it  the full RMD and only enter the the $2,000 as the RMD amount.     You don't enter the full 3,000 for both 1099Rs.