I don't understand the TurboTax checkbox for an IRA 1099-R distribution being 'all' or 'part' of the RMD. How do I decide which to check?

[davidinlivermore]

For example, suppose I have 2 IRAs, a big one and a small one.  The holding institutions (different) informed me that I needed to take $10000 from the big one and $2000 from the small one. ( I know that I can consider all IRAs as one for meeting the RMD, and therefore take the $12K from a single account.) But suppose I needed more money, so I took $12000 from the big one and an additional $12000 from the small one.When I get to this checkbox in TT, I can correctly answer 3 different ways: "all" the RMD came from the small IRA and none for the big one, 'all' from the big IRA and none from the other, or 'part' from both. Is there any difference? Is one of these choices any better?

[dmertz · Accepted solution]

TurboTax only asks the question to determine how much of the distribution might have been eligible for rollover.  If you didn't roll over any part of these distributions, it doesn't matter how you answer this question.

If you did roll over any of these distributions, the first amount distributed from these IRAs is RMD up to the amount of the RMD for that particular account; the rest can be rolled over.  However, if you do not roll over any of that first distribution, the amount in excess of the RMD for that account can be applied as RMD for another of your IRAs.  In your example, if you treat the first distribution of $12,000 as RMD for both of your traditional IRAs, you can roll over any other single distribution made from any of your traditional IRAs for that year.  (Rollovers are limited to one distribution rolled over per 12 months across all of your IRAs.)

[rdepps]

I have an annuity and an IRA. The annuity pays more than the RMD for both. How do I determine the amouny to fill in the form . 

[dmertz]

If the IRA annuity has been annuitized (not deferred) and the Payer does not provide a year-end value for the IRA annuity, the distribution from the IRA annuity is considered to be entirely RMD from the IRA annuity and the entire RMD for the annuity.  Periodic distributions from an IRA annuity generally cannot be treated as satisfying the RMD of another of the individual's IRAs.

However, if the IRA annuity provided a year-end value for the previous year from which an RMD for the IRA annuity can be calculated for the current year, any amount distributed from the IRA annuity in excess of that calculated amount can be treated as satisfying some or all of the the RMD for another of the individual's IRAs.