Turbo Tax is assessing an RMD penalty even though I've fulfilled my RMD requirement

[MifKap]

I have multiple IRA accounts.  To address my RMD obligation I calculated the RMD amounts for each account to get my total RMD due.  I fulfilled my total RMD requirement by withdrawing more out of one account than two of the others.  

Even though I have withdrawn the total RMD obligation I have for 2025, TurboTax is indicating that I owe a penalty approaching $10,000.  This is woefully incorrect.

Is there a way to correct this problem in Turbo Tax?

[MinhT1 · Accepted solution]

If you are sure that you have satisfied all RMD requirements, then in TurboTax, on each form 1099-R for RMD withdrawals, answer that The entire distribution was an RMD then on the following page, to the question What is the RMD for your account? enter the amount of the distribution from that IRA account.

By doing this, you are telling TurboTax that all RMDs are satisfied and TurboTax will not calculate any penalty. The information you entered in TurboTax is to enable TurboTax to calculate any penalty where applicable, and is not reported to the IRS.

[MifKap]

This does not work.

1. On the page “Let’s get more information about your RMD”, I enter the amount that’s was due by December 31 2025.  I withdrew more, but I answer what was due, not what I withdrew in total

2. On the next page I check that the Entire Distribution applied to the Dec 31, 2025 RMD

After that there is no other page.  It returns me to the list of 1099-R’s I’m working through

I also entered the same data as entered in TT in the AARP tax calculator, and I get no penalty.  In TT It shows me paying a penalty.

I am really stumped.

[MifKap]

UPDATE:

So yesterday I followed your advice and adjusted the number on each 1099-R to reflect what I had withdrawn from each account to meet my RMD requirements.  The app continued to show a penalty.

This morning I had planned to delete each 1099-R individually to see what was triggering the penalty. Ended up I did not need to do this?  I logged into TT, it opened my tax return, and found that everything was correct.  The penalty was gone and the data aligned with my estimates.  Not sure why this occurred, but right now the app is processing my return without the penalty.

Thanks for our guidance!

[MifKap]

UPDATE:

So yesterday I followed your advice and adjusted the number on each 1099-R to reflect what I had withdrawn from each account to meet my RMD requirements.  The app continued to show a penalty.

This morning I had planned to delete each 1099-R individually to see what was triggering the penalty. Ended up I did not need to do this?  I logged into TT, it opened my tax return, and found that everything was correct.  The penalty was gone and the data aligned with my estimates.  Not sure why this occurred, but right now the app is processing my return without the penalty.