Solved: TTax asks: "Was this withdrawal an RMD?" It was inherited (emptied to disperse), so I don't know-a yes then asks how much RMD, but I don't know.
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senojgs
New Member

TTax asks: "Was this withdrawal an RMD?" It was inherited (emptied to disperse), so I don't know-a yes then asks how much RMD, but I don't know.

Options are: "Yes, some or all of this withdrawal was an RMD." "No, none of this withdrawal was an RMD. (This is not common.)" If I choose yes, then it asks how much - I inherited some money, I don't know how the RMDs were handled 

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Accepted Solutions
macuser_22
Level 15

TTax asks: "Was this withdrawal an RMD?" It was inherited (emptied to disperse), so I don't know-a yes then asks how much RMD, but I don't know.

If the account was closed then just say it was all a RMD.


The answer to the question does not go on your tax return, it is simply to make sure you do not owe any penalty for not taking the RMD or use it for an ineligible rollover.

The question is just to be sure that the requirement was met.


**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

View solution in original post

9 Replies
macuser_22
Level 15

TTax asks: "Was this withdrawal an RMD?" It was inherited (emptied to disperse), so I don't know-a yes then asks how much RMD, but I don't know.

If the account was closed then just say it was all a RMD.


The answer to the question does not go on your tax return, it is simply to make sure you do not owe any penalty for not taking the RMD or use it for an ineligible rollover.

The question is just to be sure that the requirement was met.


**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

View solution in original post

fanfare
Level 15

TTax asks: "Was this withdrawal an RMD?" It was inherited (emptied to disperse), so I don't know-a yes then asks how much RMD, but I don't know.

The answer to the question certainly does go on your tax return. you have to say what the RMD was and pay a penalty on the difference..
macuser_22
Level 15

TTax asks: "Was this withdrawal an RMD?" It was inherited (emptied to disperse), so I don't know-a yes then asks how much RMD, but I don't know.

Nothing about a RMD is reported on a tax return unless the RMD was missed, then the *penalty* for a missed RMD will go on a tax return, not the RMD itself, but in almost all cases a missed RMD will be granted a waiver if applied for on a 5329 form.

A distribution that is a RMD and distribution that is not a RMD are identical - there is *nothing* that identifies that one is different then the other on a tax return.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
fanfare
Level 15

TTax asks: "Was this withdrawal an RMD?" It was inherited (emptied to disperse), so I don't know-a yes then asks how much RMD, but I don't know.

where on TurboTax does one indicate that the RMD was missed ?

See also 5329 Line 52 if you haven't looked at it recently.
macuser_22
Level 15

TTax asks: "Was this withdrawal an RMD?" It was inherited (emptied to disperse), so I don't know-a yes then asks how much RMD, but I don't know.

Where?  In the 1099-R interview if there is a 1099-R, otherwise  a 5329 must be completed external to TurboTax unless the desktop version is used - but you know that.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
fanfare
Level 15

TTax asks: "Was this withdrawal an RMD?" It was inherited (emptied to disperse), so I don't know-a yes then asks how much RMD, but I don't know.

I don't know that. I tried entering a 1099-R and to indicate that I was short on the RMD, but there were no screens related to that. That's why I ask.
macuser_22
Level 15

TTax asks: "Was this withdrawal an RMD?" It was inherited (emptied to disperse), so I don't know-a yes then asks how much RMD, but I don't know.

This questions was about an inherited retirement account.  The 5329 for an inherited account can only be done on an external 5329 - only 5329's for the taxpayer and spouse are supported by TT.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
fanfare
Level 15

TTax asks: "Was this withdrawal an RMD?" It was inherited (emptied to disperse), so I don't know-a yes then asks how much RMD, but I don't know.

all well and good -still I tried to enter a 1099-R for myself and indicate I was short on the RMD.
Try it and see for yourself.
macuser_22
Level 15

TTax asks: "Was this withdrawal an RMD?" It was inherited (emptied to disperse), so I don't know-a yes then asks how much RMD, but I don't know.

What code in box 7 did you use?   And it is the 2nd RMD question after the 1099-R summary screen is where that will come up.  Not when you enter each 1099-R.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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