topic Re: RMD error in Get your taxes done using TurboTax

RMD error

saxmaniac — Sat, 25 Jan 2025 21:45:39 GMT

O 1/22/25, I completed my taxes on turbo tax deluxe and was about to file. There were no errors upon review. I decided to wait another day. On Thursday, I re-opened turbo tax and download/installed updates. Upon opening the return, another review for errors NOW showed the following statement that was NOT there yesterday...

"RMD amount should not be less than the distribution amount that is for the RMD."

I checked my data entry and it was correct as entered days earlier. The RMD was $10,938 for 2024 whereas my total withdrawal from the just one account was $14,000. I can only conclude that the update dowloaded on Thursday introduced an error or glitch into the program. A phone rep at Intuit said an uodate on 1/25/25 would correct this issue.

Where is the update? Thank goodness I did not "file" on Wednesday! How can Intuit sell an unfinished product and expose customers to erroneous filing scenarios!?

Re: RMD error

VolvoGirl — Sat, 25 Jan 2025 21:48:22 GMT

@dmertz did they update the program wrong last Thursday?

Re: RMD error

dmertz — Sun, 26 Jan 2025 03:52:25 GMT

It does seem that they made a change that increases confusion by indicating inappropriately on the page that asks how much RMD was required that the amount distributed was the RMD amount rather than the gross-distribution amount. This change might have occurred with the 1/ 23/2025 update, but I haven't been following it closely. There does not appear to have been a subsequent update.

It appears that an appropriate result is still possible by reporting the way that I have suggested previously: Indicate the amount that was required to be taken is the amount of the particular distribution that actually went to satisfying RMDs, and, if some portion of the RMD for the individual's traditional IRA went unsatisfied, include that only on the entry of the Form 1099-R that includes the last traditional IRA distribution made that year (making the required amount for that account be the amount distributed plus the amount of RMD that was unsatisfied). It seems that I have difficulty reproducing the symptom since I know what the software does with my entries, so I seem to just make entries that produce an appropriate result.

Re: RMD error

HardToThrill — Sun, 26 Jan 2025 13:56:29 GMT

as of 1/26/25 8:53, this is still an issue. The 1099-R process is broken. No matter which way I try, I still get the message 'RMDamount should not be less than the distribution amount that is for the RMD'. My Gross Dist. is 3x greater that the required RMD I have entered. Hey TurboTax!.......fix this!!!

Re: RMD error

HardToThrill — Sun, 26 Jan 2025 17:39:13 GMT

Ok, so I went to their competitor's tax prep site, and it worked my taxes are complete with no errors. Goodbye TT.

Re: RMD error

saxmaniac — Tue, 28 Jan 2025 22:41:27 GMT

Hello Intuit!

I have posted here and called support at least twice since last week. Can anyone with clout advise if and when you will update the software and fix the glitch in your program!? The telephone customer service reps are cordial but have no authority and I receive no callback or reply or feedback here that a software update fix is imminent (next day or two). I have used Turbotax for around 25 years and this probably the last time I buy the program.

How can you sell an unfinished product where customers may inadvertently file a return with errors due to your poor quality??

Re: RMD error

pk26 — Fri, 31 Jan 2025 20:12:48 GMT

as of 1/31/25 this is still an issue.

Re: RMD error

saxmaniac — Sat, 01 Feb 2025 00:31:17 GMT

I believe I solved the problem and I will tell you what that resolution is momentarily but first let me say that it is shameful that I have to point out the error fix and that Intuit has yet to fix it.

It appears that each time you enter the required RMD one of the entry questions does not (fails to) round it down or up as all other dollar entries are on TurboTax. Consequently, without rounding up to the nearest dollar or down as the case may be, you must do it consistently yourself for each RMD data entry and be sure that all entries of your RMD are similarly rounded down or up as the case may be. That should fix the issue.

Re: RMD error

oogje — Sat, 01 Feb 2025 20:04:02 GMT

Thank you!

Re: RMD error

JudyNYC — Sun, 02 Feb 2025 01:20:36 GMT

thanx. you solved the problem!

Re: RMD error

rmcc852 — Sun, 02 Feb 2025 19:53:05 GMT

To clear the error, when it asks for the RMD for that year, enter a $1 more than the actual amount. Leave the amount actually withdrawn the same as it appears on the 1099-R. When it asks you on the next screen did you withdraw the additional $1 during the collection time period, click no. The taxes owed on less than a dollar will not change refund/balance amounts and no additional penalty will be added. The error will disappear.

Re: RMD error

hollansc — Sun, 02 Feb 2025 20:59:03 GMT

Had same problem. RMD was XXX.01. Took out .01 and no more errors.

Re: RMD error

pk26 — Sun, 02 Feb 2025 21:18:41 GMT

Thanks rmcc852!

I was able to get by the error yesterday but I’m not exactly sure why as the information I re-entered was the same.

My scenario was that my total distributions exceeded the RMD. For example:

$40,000. 00 = RMD

$50,000.00 = Total Distributions

Number of IRA Accounts = 1

TT Deluxe Desktop Retirement Account Questions:

TT Question: Was the withdrawal an RMD for 2024?

Selected: Yes, some or all of this withdrawal was an RMD

TT Question: Tell us how much of the $50,000.00 Paul received applies to the RMD that needed to be taken out.

Options

A) All of this distribution was an RMD

B) Part of this distribution was an RMD

I selected option B.

TT Question: Let’s get more information about Paul’s Required Minimum Distribution (RMD).

Paul received a distribution of $50,000 from this account. If Paul’s total RMD for 2024 was more than the amount taken out, there might be additional taxes to consider. What was the required distribution for Paul’s account in 2024?

I entered the RMD of $40,000.

In any event I’m all set. Thanks again for your reply.

Re: RMD error

pk26 — Sun, 02 Feb 2025 21:20:00 GMT

Sounds like I may have had the same situation.

Re: RMD error

Butrus — Mon, 03 Feb 2025 22:41:56 GMT

Thanks. So where is the fix from Turbotax?

Re: RMD error

saxmaniac — Mon, 03 Feb 2025 22:52:35 GMT

Great question. Call them up and complain.Their phone reps have little or no clout. And, it seems the issue POSSIBLY never makes it to the software group. The best approach is to call the corporate office and complain heartily! Horrendous support with no feedback. They take customers for granted. Next year I switch to a competitor tax software program.

Re: RMD error

OldSalt13 — Tue, 04 Feb 2025 15:58:23 GMT

So TurboTax advertises accuracy guaranteed.

Can i get a refund?

Re: RMD error

CatinaT1 — Tue, 04 Feb 2025 16:03:49 GMT

Here is how to submit documentation for accuracy guarantee claims.

Re: RMD error

DannSo — Mon, 10 Feb 2025 18:06:08 GMT

I have tried ALL of the RMD "fixes" recommended here and elsewhere and still cannot get passed this glitch. When exactly can I expect a real fix from turbotax? It's quite frustrating!

Re: RMD error

DanaB27 — Thu, 13 Feb 2025 04:46:49 GMT

Please see Why am I getting an RMD distribution amount error? to be notified when the error is fixed.

@DannSo