Turbo Tax is appears to be handling each IRA distribution and RMD on a case by case basis, rather than aggregating as intended and approved by the IRS.

[TGille605]

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.

[VolvoGirl]

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.

[finsr]

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?

[finsr]

I believe I can simply aggregate the required RMDs and enter that for IRA-A.

[dcschlott]

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.

[DanaB27]

Yes, for your case you would  aggregate it.

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. Continue until "How much of the $XXXXX was a RMD?" screen, select select "Only part of this distribution was a RMD" and enter the amount of RMD ($3,000).  Then click "Continue".
5. On the "Let's get more information about your Required Minimum Distribution (RMD)" screen enter the $3,000 again.
   
   @finsr 

[TGille605]

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? 

[choeni1216]

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. 

[garycohenMN]

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.

[JHLevin]

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.

[VolvoGirl]

@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.  

[finsr]

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.

[billjans]

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?

[VolvoGirl]

@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.  

[HCQuestioning]

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…