When a Vanguard advisor handles a distribution to my bank why does Turbo tax not include it in satisfying my RMD?

[pughimag]

Turbo tax did not add my two 1099-R forms, both of which contribute to my RMD. One transaction was done by my advisor.

[SabrinaD2]

When your advisor facilitates a distribution to your bank, it is still considered a taxable event and must be reported on a 1099-R form. TurboTax may not automatically recognize all RMDs without clear distinction.  Please be sure to enter each 1099-R Separately: Make sure to enter each 1099-R form individually in TurboTax.

Here's how to ensure everything is correctly reported:

1. Sign into TurboTax
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R that you used for QCD
4. On the "Required Minimum Distribution" screen enter RMD for this account
5. On the "How much of This Distribution Applied to your December 31, 2024 RMD
   1. Specify RMD Amount: Enter the RMD amount for each 1099-R when asked.
6. Next Click on the + to add the next RMD

See original post the original.

[pughimag]

Unfortunately this did not work. This time I entered two 1099-INVs with the first one being ALL RMD and the second one being partial. The two RMD amounts added up to my required RMD. Turbo tax only recognized the RMD from the partial amount. Thanks for your response. I think I will need to save a lot of time and submit my return as I usually do - by mail. I have all the numbers and I know what works on paper. The IRS never complains.

So I had hoped that turbo tax would come up with the same numbers but I'm spending too much time trying to manipulate the app to do what I need to do so I think I'll give up at this stage.

Thanks for your responses. It was worth a try.

[DanaB27]

Please follow these steps in TurboTax Online:

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 and select "Only part of this distribution was a RMD" and enter the amount of RMD /or select "The entire distribution was an RMD" (if this distribution includes RMD for other IRA accounts then you included the amount here)
5. Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
6. On the "Review your 1099-R info" screen add the second 1099-R.
7. After adding all Form 1099-Rs click "Continue"
8. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024, otherwise select what is applicable. 

In TurboTax Desktop:

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R” and enter your 1099-R
3. On the "Required Minimum Distribution" screen enter RMD for this account 
4. On the "How much of This Distribution Applied to your December 31, 2024 RMD" select "Some of this distribution…" and enter the RMD amount / or select "The entire distribution applied…"  (if this distribution includes RMD for other IRA accounts then you included the amount here)
5. On the "Your 1099-R Entries" screen add the second 1099-R.
6. After adding all Form 1099-Rs click "Continue"
7. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024, otherwise select what is applicable. 

[pughimag]

Thank you for your response. I followed that exact process but TT still did not recognize that I had satisfied the RMD. At this point I have spent more than enough time on TT. I could have submitted my tax sooner if I had not started trying out TT.

I have now checked over my forms and completed my Federal and State tax returns. I was hoping to use TT to send over my returns electronically but I will use the IRS online service instead and send them what I owe electronically this week. I get a small tax rebate from the state, so that's good.

I appreciate your reply and I followed it to the letter. It just wouldn't work for me for some strange reason.

All the best, John

[DianeW777]

We appreciate your update and information. It may be the codes in Box 7, of the Form 1099-R.  

• For code 7D, omit the code 7 and enter only the code D.
• For code 4D, indicate that the decedent died after December 31, 1951.  
• Also, be sure to review the checkboxes on the screen titled: 'Did _____ Miss a Required Distribution From Any Retirement Accounts?'

If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information it would help.  If you would like to do this, here are the instructions:  (Don't forget to give us the state)

TurboTax Online:

Open your return -Go to the menu panel on the left side of your return and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number and your state. This will allow us to open a copy of your return without seeing any personal information.  

TurboTax Desktop:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

1. Click on Online in the top left menu of TurboTax CD/Download for Windows
2. Select 'Send Tax File to Agent'
3. Write down or send an image of your token number and state then place in this issue.
4. We can then review your exact scenario for a solution.
5. Please also tell us any states included in the return. This is necessary for us to view the return.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.