Vanguard calculates my RMD every year and distributes the full amount on a schedule, but this year TurboTax calculates that I owe a penalty since it thinks I did not take my full distribution. I can't diagnose the issue because I can't see how or where TT calculates my RMD. Thanks!!
Final update (in case anyone has the same issue): Using TurboTax online. Upon federal review, it triggered a "Check This Entry" flag and asked me to fill in my RMD amount on an "RMD Excess Accumulation Worksheet" (Line A "Required RMD amount"). The *next* line on the worksheet was Line B "Amount distributed in 2024," but that entry was not editable. I did this:
- Filled in the Line A Required RMD amount. Selected Continue
- The next screen asked me to fill in Line C "Did you withdraw the remaining RMD during the correction window?" I selected "Corrected - Yes" (even though I took the full distribution during 2024!)
- This triggered another flag on review, which *did* let me fill in Line B of the same form ("Amount distributed in 2024"), so I filled in the amount of the RMD
- That triggered a final flag on review, where I could check "No entry" on Line C ("Did you withdraw the remaining RMD during the correction window?)
After that, TurboTax seemed content to discard the worksheet, and the issue was resolved.
On the 1099-R worksheet. You want to look at all worksheets. Choose to see everything, not just forms.
To print or view your forms:
Turbo Tax gets the RMD amount from what you enter. After you enter a 1099R it asks how much was the RMD. Do you have more than 1 1099R? If you get a pension say all of it is the RMD. Anything a pension pays you fulfills the RMD. Go back and check all the 1099R you entered and the follow up questions. There have been a couple major updates in the 1099R section so you may need to change your answers.
Due to TurboTax bugs,
to avoid wrongful penalty, for each 1099-R, tell TurboTax that the distributed amount is the calculated required amount.
Hi - thanks! I would *love* to tell TurboTax this, but I cannot find any place to do so. I've worked through all the follow-up questions, and I've deleted and re-entered the 1099-R. There is one screen where it asks whether I've failed to take my RMD from any accounts, and I say "None of these plans failed to withdraw the RMD," and then on the next screen it says I have a penalty "based on the amount not distributed in 2024." I'm utterly baffled.
Update: it does seem it's a logic flaw in the online version :( I absolutely cannot trigger the question "Did you take the full amount of the RMD?" I'll try the desktop version...
Final update (in case anyone has the same issue): Using TurboTax online. Upon federal review, it triggered a "Check This Entry" flag and asked me to fill in my RMD amount on an "RMD Excess Accumulation Worksheet" (Line A "Required RMD amount"). The *next* line on the worksheet was Line B "Amount distributed in 2024," but that entry was not editable. I did this:
- Filled in the Line A Required RMD amount. Selected Continue
- The next screen asked me to fill in Line C "Did you withdraw the remaining RMD during the correction window?" I selected "Corrected - Yes" (even though I took the full distribution during 2024!)
- This triggered another flag on review, which *did* let me fill in Line B of the same form ("Amount distributed in 2024"), so I filled in the amount of the RMD
- That triggered a final flag on review, where I could check "No entry" on Line C ("Did you withdraw the remaining RMD during the correction window?)
After that, TurboTax seemed content to discard the worksheet, and the issue was resolved.
I have this issue. I have tried importing and manually entering the RMD information from Vanguard. I have received the full RMD distribution and answered the questions - No I did not have any nondeductible IRA contributions, birth year of the deceased, entered the amount of the RMD due on December 31, 2024 as the same in box 1 gross distribution. Lastly chose the box with The entire distribution applied to the December 31, 2024 RMD. Chose Continue on the summary information for 1099-R ; Chose No to repayments of prior year disaster distributions in 2024. Chose None of these plans failed to withdraw the RMD on the did you miss a required distribution from any retirement account page.
This produces "Requesting a waiver for _your name_____ Required Minimum Distribution (RMD)" for a penalty based on the amount not distributed in 2024.
There is not a undistributed amount. I can't get this resolved no matter what I do.
I received a call back from support and resolved the issue. The blanks and 0s are not interpreted in the federal review properly causing the application to miscalculate the RMD distribution and taxes entrees.
Resolution-
Review the 1099 R entries in the Wages and Income section. Step through the questions and check amounts entered. The gross amount must be entered on the required distribution page (let's get more information about your RMD) and The entire distribution applied to the December 31, 2024 RMD.
Last step is the Federal Review - the review may produce 1 issue to review which is the RMD worksheet . Carefully enter the amounts on the page to ensure the application calculates the full distribution. If you make a mistake return to the Wages and Income section and step through the wizard again. Then finish with the Federal Review. The worksheet will be presented to make the update.