Turbo tax is miscalculating rmd. Have seen where there is a software glitch. Please advise how to handle?

[edpalko]

How you fix error in turbo tax rmd required amount?

[ReneV4]

The RMD calculation is based on information that is entered into TurboTax and not on your actual bank or brokerage records, so this can be resolved easily by following these steps:

First, delete the original Form 1099-R and Form 5329:

1. Go to Tax Tools on the right hand panel inside of TurboTax
2. Click on the down arrow and scroll down to Tools
3. Click on Tools and select Delete a form from the menu items that appear in the Tool Center
4. Click on the trash can icon to the right of Form 1099-R and Form 5329

Now, click back on Income in the Federal section to return to input the Form 1099-R information again:

1. Go to Income on the left panel within your TurboTax account
2. Scroll down to Retirement Plans and Social Security and click on the down arrow to the right
3. Click Start to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R)
4. Click the "Enter a different way" box
5. Click the "Type it in myself" box
6. Click on the box that pertains to your type of 1099-R (typically the first box), Continue
7. Next, you will see, "Enter your 1099-R provider's info", complete that, then Continue
8. Next, you will see "Enter your 1099-R details from _". Enter the information from the original Form 1099-R that you received
9. Ensure the details from your Form 1099-R are correct checking for which Distribution Code was used in Box 7, then Continue
10. Continue through until you reach, "Let's get more information about your Required Minimum Distribution (RMD)", enter your RMD due by December 31
11. Note: If your 1099-R distribution amount in Box 1 is enough to satisfy all of your RMD, you can enter your entire RMD for all accounts here
12. Next, you are asked, "How much of this distribution applied to your December 31 RMD?"
13. If you select "Some", you will need to enter the same amount (as in step 10 above) of the distribution that applied to your RMD*
14. You will reach "Review your 1099-R summary", press Continue (not the pencil) and additional questions will generate for you to answer
15. When you reach "Let's go over any required minimum distributions (RMD)", Continue (not the pencil)

The above steps should resolve the incorrect penalty calculation.

*Note: If you did not take all of your RMD and are expecting a penalty, just not the amount calculated, then the interview questions will guide you through the additional questions so that TurboTax can then calculate the correct penalty amount and generate Form 5329.