topic TurboTax not recognizing my RMD entry and says I need a waiver in Get your taxes done using TurboTax

TurboTax not recognizing my RMD entry and says I need a waiver

ceilpie — Fri, 24 Jan 2025 02:46:22 GMT

I have 3 retirement accounts. All three are entered in my in-progress return and represent a total RMD in excess of the minimum RMD for all 3 accounts. However the program says I need a waiver because I did not take the full amount. The related form (5329) only lists 2 of the RMD amounts. The program does not seem to include all the entries made for all three of the accounts.

Re: TurboTax not recognizing my RMD entry and says I need a waiver

MarilynG1 — Mon, 27 Jan 2025 22:33:42 GMT

Make sure you have the IRA box checked on all three of your 1099-R entries. Taking your total annual Required RMD across several accounts can be tricky to enter into TurboTax correctly.

If your total RMD is 15K for example, and you took distributions from three different accounts to satisfy this, you can choose 'all or part of of this distribution is RMD'. Then enter the RMD amount on the next screen as equal to (or less than that distribution).

Any distribution amounts over the required amount are considered 'non-RMD' and TurboTax asks what you did with the balance. For example, If you had a distribution of 20K and you indicated that 5K is the RMD for that account.

Since the IRS doesn't know what your total RMD should be, or how much from each account, as long as you account for the total RMD with an amount equal to or less than the distribution you are reporting on the 1099-R, you should have no issue.

Here's more info on What is RMD?

Re: TurboTax not recognizing my RMD entry and says I need a waiver

VolvoGirl — Mon, 27 Jan 2025 22:37:58 GMT

Turbo Tax changed this year. When it asks about the RMD it is only asking for that one 1099R. You need to enter the amount in box 1 on that 1099R for the RMD, not the total RMD for all.