topic Re: wrong total RMD in Retirement tax questions

wrong total RMD

jnstevenson — Tue, 11 Feb 2025 22:45:47 GMT

When the "Let's check if ... met the minimum distribution requirement" comes up the suggested total RMD is calculated wrong. It is much higher than it should be. What to do about this?

Re: wrong total RMD

DavidD66 — Wed, 19 Feb 2025 00:50:13 GMT

In order to correct this, you need to clear the RMD information you have already entered in TurboTax. To do so, you will have to delete each of your Forms 1099-R. After you delete the forms, re-enter them. When you are asked "How much of the $32,400.00 was an RMD?" Mark the button to indicate that "The entire distribution was an RMD". On the screen with "Let's get more information about your Required Minimum Distribution (RMD)." the program asks "Could you tell us what the required minimum distribution for your account was in 2024?" Enter the same amount that was in box 1 of your 1099-R. Do this for each of your Form 1099-R.

After you have entered all your Forms 1099-R, on the screen with ""Let's check if you met the minimum distribution requirement" the program will ask "Did you take the required minimum distribution (RMD) for 2024 for ALL of your retirement accounts that have this requirement?". Answer Yes, assuming that you have met your combined RMD requirements.

The RMD information that shows may be more than your actual combined RMD amount for the year. That's OK. The information is not included with your tax return and is not reported to the IRS.

Re: wrong total RMD

jnstevenson — Wed, 19 Feb 2025 21:59:18 GMT

DavidD66, thanks for that information. I have corrected my thinking now - it seems that TT is OK.

I was confused because TT was taking payments from a retirement plan (which technically is not an IRA) as if it had an RMD. When this was added to my known RMD amounts the result was larger than I expected. I mistakenly thought TT was doing something wrong. Also I saw a message that seemed to say that I should not file before correcting the return.

It is OK.

Thanks DavidD66