Turbo Tax is handling each IRA distribution and RMD on a By using the current Turbo Tax approach, when a single IRA distribution fails to satisfy its corresponding RMD, Turbo Tax computes the tax for failing to distribute the appropriate funds from the IRA. The correct approach is to aggregate IRA distributions and aggregate RMDs, then make the comparison. I have both called and written Turbo Tax with assurance that the process is correct, when it obviously is not.
Yes Turbo tax changed it this year. Lots of complaints. 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.
If that is the case, how do you account for the second IRA if you don't have a corresponding 1099-R even though the aggregated RMD is satisfied?
Example: IRA-A distribution $10,000, RMD $2,000 1099-R received
IRA-B distribution $0 RMD $1,000 no 1099-R
The RMD is satisfied for both accounts as the distribution was $10K, but how do you acknowledge the IRA-B to the IRS in TT without a 1099-R?
I believe I can simply aggregate the required RMDs and enter that for IRA-A.
So, I am assuming the only way to get the correct amount for figuring your tax is to enter the sum of all of the RMD 1099-R's into one entry.
Yes, for your case you would aggregate it.
The listed procedure appears to be work around. If the entire distribution is intended to satisfy a RMD, why would I indicate otherwise? I don't think the IRS will be receptive to entries that are inconsistent with the 1099R. Why not just fix the problem?
Turbo Tax reps have given me different answers when I have chatted on line with them. Then I got an email from them that they know they have a problem and are fixing it. A day later I was notified the problem was correct but when I went to complete my 1099R section it was still incorrect. Wrote them back and they told me they were still working on it. Over a week later and I have hear nothing. Hate getting my taxes DONE early only to have the program screw up. I have been doing RMDs thru Turbo for a number of years and never had this problem before.
A workaround that works for me is to enter each of the 1099R forms individually and then open the tax form 5329T, and use the EDIT>OVERRIDE function for lines 52 and 53. That allows the user to enter manually the sum of all RMDs for qualifying IRAs on line 52a and the sum of all distributions for the same qualifying IRAs on line 53a. Then one follows the intsructions on lines 54 and 55. That will yield the amount of any tax penalty that is due or produce a zero if total of the distributions met the sum of the RMDs. The result will be entered automatically in the appropriate place on the form 1040.
As a technical matter, how do you open the Form 5329? I am not seeing any way to bring up that Form while I'm completing my 2024 Return on TurboTax. I find it on the IRS website, but a search on TurboTax does not bring it up.
Thanks for any further assistance you can provide.
@JHLevin Are you using the Online version? There is no Forms mode in Online. That is only available in the Desktop installed program. So you can’t make entries directly on the forms in Online.
I downloaded the product and am using my desktop.
I ended up adding the RMD for the account without a 1099-R to the second account (for the same individual) RMD that had a 1099-R.
I find all of this very confusing. I have two IRA accounts. (I don't want to use the actual numbers.) My RMD for Account A is much less than the RMD for Account B. But I withdrew more than the required total RMD amount from Account A and none from Account B. So, there is no 1099-R for Account B. When entering the 1099-R for Account A, I entered the actual RMD amount. Then on the next screen, I checked the box "Some of this distribution applies to the RMD amount." Then in Amount Applicable to the RMD, I entered the total RMD amount for both Accounts A and B. A subsequent screen asks for information on the RMD amount for Account B, which is where I entered the actual RMD amount for Account B. Is all this correct, or is this going to result in an error in filing my taxes, or alert the IRS to failing to take the full amount of my total RMD?
@billjans Turbo Tax fixed the RMD questions yesterday on 2/20/25. If you are using the Desktop program you may need to do the update, go up to Online-Check for Updates or close and reopen the program.
I couldn't follow what you did but it sounds right. Not sure why it asked about account B if you didn't get a 1099R for it.
But when I do that TurboTax then shows the RMD amount as the total distribution even though previously entered 1099R distribution was larger than the RMD. So totally confused…
I’m doing this today 2/21/25 and still is scewed up as far as I can see. Maybe I’m not understanding - but I never had this problem before and have been using the online program for years.
I think the TurboTax fix was to create a 5329T in the online version. Then the process to indicate that the total RMD has been withdrawn regardless of which accounts were used to satisfy the RMD is the same as what Gary Cohen outlined earlier in this thread using the desktop version. TurboTax completes most of the information for the 5329T, but it is necessary to enter the total RMD amounts on both lines 52a and 52b. This results in an unfulfilled RMD amount of zero.
In addition to not accumulating RMD from different accounts, an RMD amount has to be entered for other plans such as Cal PERS in order to eliminate the penalty in Turbo Tax.
I thought I was the problem at first but finally concluded that the program is faulty. I Googled the issue and came upon this community. I'd like to finish my taxes with Turbo Tax but it's obvious they haven't addressed the problem. I called and they created a ticket for IT. No guarantee on how long it will take. I may just switch to another provider despite putting a lot of work into this already.
Some TurboTax customers may receive an error, RMD amount should not be less than the distribution amount that is for the RMD. Check this entry, when the RMD and the amount applied to RMD are the same.
We’re currently working to resolve this issue. If you’d like to receive progress updates, sign up below. @JLMcK
Turbo tax is still not calculating RMD correctly. I have triple checked and it is still telling me I have not made my RMD for 2024.
I'm having a similar problem, but it is rounding the amounts on some entries, but not all. so I end up being $0.60 short on my RMDs. so it wants me to file the form or a waiver.
I keep getting emails that Turbo Tax appears to be handling RMD's on a case by case basis. Does this mean that we have to ask an "expert"? I have done this 2 times already and gotten different answers from both; however, now I have a new form that I am to review but is asks questions I have no idea how to answer and it I do try to answer it does not let me make changes to the form. Does this mean I will have to pay extra and have a person do my taxes? I am really disappointed that Turbo has not fixed this glitch. I have been doing RMD's for over 3 years and never had this problem before.
Same problem and I have been doing this since the last week of January. Still no answers from Turbo Tax. At one point I got a response to wait to file. I have been waiting 6 weeks now with now no luck! Guess I'll lay out the extra money to have one of their people complete my tax. Normally, I wouldn't mind but have had RMDs for 3 years and never had a problem. If it's a computer glitch, you think they could fix it. Makes me wonder if you'll get audited this year at the ripe old age of 76.
There are never any progress reports. All I keep getting is messages from other users that there is a problem and Turbo Tax appears to be handling them individually. Well I started my tax return in January and it is still not solved. After speaking with 2 reps with different answers I am afraid to submit my taxes!