Multiple IRA's generate separate MRD's and Penalties

jrfrerichs — Sat, 01 Mar 2025 01:05:37 GMT

Turbo-Tax needs to fix this program problem. I have a traditional IRA, a Rollover IRA and a SEP at two different brokerages. Turbo Tax asks for balances separately and calculates MRD's separately. The program assumes that the required distributions will be made from the corresponding accounts and calculates a penalty when the distribution fall short of that calculated. The IRS permits drawing distributions from any single or combination of accounts as long as the total obligation is satisfied. There is no obvious provision in the program for satisfying multiple MRD's from other than the associated accounts.

Re: Multiple IRA's generate separate MRD's and Penalties

DanaB27 — Sat, 01 Mar 2025 13:21:02 GMT

If you met all of your RMD for 2024 then you are not required to file Form 5329. Please review the instruction below.

Please follow these steps in TurboTax Online:

Login to your TurboTax Account
Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R” and enter your 1099-R
Continue until "How much of the $XXXXX was a RMD?" screen and select "Only part of this distribution was a RMD" and enter the amount of RMD /or select "The entire distribution was an RMD" (if this distribution includes RMD for other IRA accounts then you included the amount here)
Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
On the "Review your 1099-R info" screen click "Continue"
On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024, otherwise select what is applicable.

In TurboTax Desktop:

Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R” and enter your 1099-R
On the "Required Minimum Distribution" screen enter RMD for this account
On the "How much of This Distribution Applied to your December 31, 2024 RMD" select "Some of this distribution…" and enter the RMD amount / or select "The entire distribution applied…" (if this distribution includes RMD for other IRA accounts then you included the amount here)
On the "Your 1099-R Entries" screen click "Continue"
On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024, otherwise select what is applicable.

topic Multiple IRA's generate separate MRD's and Penalties in Retirement tax questions

Multiple IRA's generate separate MRD's and Penalties

Re: Multiple IRA's generate separate MRD's and Penalties