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New Member
posted Jun 3, 2019 12:53:02 PM

Why is the program asking about an RMD for an IRA Distribution due to the death of a parent who was not 70 1/2 years of age when they died in 2017?

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6 Replies
Level 15
Jun 3, 2019 12:53:03 PM
Level 15
Jun 3, 2019 12:53:04 PM

Can you look at questions again that follow the 1099R entry?

Level 15
Jun 3, 2019 12:53:05 PM

Presumably you were a designated beneficiary on this IRA inherited from your parent and are receiving distributions from this inherited IRA.  2018 TurboTax is asking about the RMD that you might have been required to have taken from the inherited IRA as beneficiary if you have chosen to take distributions based on your life-expectancy.  However, since your parent died before reaching age 70½, you have the option to use the 5-year rule which only requires that the entire IRA be distributed by the end of the 5th year following the year of your parent's death (2022).

Since you are not eligible to roll over any distributions you receive from the IRA, it doesn't matter how you answer the question that asks how much of the distribution was RMD.  You can also later answer that you were not required to take an RMD for 2018 if you have chosen to use the 5-year rule.

New Member
Jun 3, 2019 12:53:06 PM

Thank you for the detailed response. Per the recommendation of my financial planner, there were two pension distributions (not IRA,I misspoke) that were rolled over in their entirety to an IRA plan. I double checked all my entries and had already selected that I was not required to take an RMD for 2018. However, it appears that the program is mis-stating the standard deduction at $25,300 picking up my deceased father's age (?) and not $24,000 which would reflect my age and my husband's of under 65, thus overstating the federal refund. Hmmm.

Level 15
Jun 3, 2019 12:53:07 PM

The standard deduction has nothing to do with a 1099-R.    The age for the additional $1,300 comes only from the date of birth you entered in the personal  information section for you and your spouse.   Review that section since it appears that there is a typing error for the year of birth for one of you.

Level 15
Jun 3, 2019 12:53:09 PM

Thanks, macuser_22, I was about to say exactly the same thing.

The answer I gave applies equally to distributions from a qualified retirement plan except that distributions with codes 4 with G or 4 with H indicate permissible direct rollovers to inherited traditional or Roth IRAs, respectively.