Turbotax calculates RMD as three times the actual RMD

[JeffFinnan]

I have my IRA with Fidelity Investments and downloaded all the information from Fidelity into Turbotax. I transferred a little less than I needed for my RMD paying sufficient tax on that amount as it was transferred. I also had two Qualified Charitable Distributions directly out of my Fidelity IRA to the organizations such that the total of the of the Fidelity transfer and QCDs was a little more than the required RMD. Let’s say that total was $20,000*. This total was reflected in the Fidelity 1099-R.

I had to create 1099-Rs for the two charitable organizations. I figured out how to make them into QCDs within Turbotax.

The challenge for me is what to check when asked “How much of the $20,000* was an RMD?”

“Since you're over age 73 in 2024, you may have taken a required amount of money, or required minimum distribution (RMD), out of this account, or else be subject to an additional tax. The RMD needs to be withdrawn each year, and the plan administrator, banker or broker usually figures out how much money must be taken out.”

There are three choices

• The entire distribution was an RMD
• Only part of this distribution was an RMD amount
•  None of this withdrawal was an RMD

For the Fidelity 1099-R, I chose “Only part…” which opens a box to indicate what the RMD was which is slightly less that the Fidelity Distribution. Let’s say it was $19,000*.

For the two QCDs, $4000 and $1000, I was faced with the same three choices. If I chose “Only part…” it would put in the $19,000.  I tried the other choices too. In all cases after a few clicks, I get to the page “Let's check if Jeffrey met the minimum distribution requirement” where it says “From what you’ve told us, your total RMD is” $57,000" which is  exactly three times the RMD of $19,000.  Yikes.

What am I messing up here.

Thanks,

Jeff

*Not the real number.

[JeffFinnan]

The reason I had to create 1099-Rs for the two QCDs is that I only received acknowledgement letters from the organizations.

[JeffFinnan]

Okay, not sure if this is the correct way to do this. Here is what I did.

• I deleted the two 1099-Rs for the two QCDs entered. The RMD corrected to just 1X in the summary as expected.
• I edited the Fidelity 1099-R:
  • Changed “Do any of these situations apply to you?” from None to “I transferred all or part of this money directly to charity”
  • For the “How much of the $20,000* was an RMD?” I kept the Fidelity 1099-R just like I did in my original post; the RMD was S19,000*.
  • For “How much did NATIONAL FINANCIAL SERVICES LLC” (aka Fidelity) “transfer directly to charity?” I added S5,000 which is the sum of the two QCDs. When I did that the Refund/Due amount adjusted as expected for a little less taxable income.
  • The next screen says: “Part of your distribution is now tax free! $5,000.00 of your retirement distribution is now designated as a nontaxable Qualified Charitable Distribution (QCD). This is different than a charitable deduction. Since we claimed this here, you can’t also claim it as a charitable deduction later. “

This fixes the taxing. Not sure how I would I account for the specific charitable organizations. Maybe it is not necessary.

I will continue with rest of the return. Maybe somebody will chime in in the meantime.

*Not the actual values.