topic Re: Roth IRA BDA in Retirement tax questions

Roth IRA BDA

agent414 — Sun, 02 Mar 2025 22:57:04 GMT

I inherited a Roth IRA and so now I have a Roth IRA BDA. I am taking RMD (required minimum distribution) and in my situation my RMD per year is based on my life expentency. I know that this is not taxed. Over the past few years I have had no problem with desktopTurboTax.

This year (tax year 2024), I am getting an error that needs to be corrected on the 1099-R form (worksheet). It is asking me to enter a "Required RMD Amount". However, when I enter this, as well as entering the "Amount Distributed in 2024" (which is the same amount), the worksheet then wants me to answer the question,"If this is a distribution from a traditional IRA or qualified retirement plan ....". However, it is neither - it is a Roth plan. So I'm not sure how to answer the questions. Easy step does not address this issue.

Thanks in advance for any suggestions.

Re: Roth IRA BDA

fanfare — Mon, 03 Mar 2025 02:02:39 GMT

I guess you are saying "neither" is not an option.

what are the codes in Box 7 of 1099-R?

@agent414

Re: Roth IRA BDA

agent414 — Mon, 03 Mar 2025 12:06:35 GMT

Hi fanare,

The code in Box 7 is T.

The IRA/SEP/SIMPLE box is not checked.

Re: Roth IRA BDA

agent414 — Mon, 03 Mar 2025 12:07:45 GMT

Hi fanfare,

And "neither" is not an option.

Re: Roth IRA BDA

MaryK4 — Tue, 11 Mar 2025 21:42:22 GMT

The interview in TurboTax has the option: "None of these plans failed to withdraw the RMD".

The RMD Excess Accumulation Worksheet D. has choices: IRA, 403(b), or Other. IRA should be checked.

@agent414

Re: Roth IRA BDA

agent414 — Tue, 11 Mar 2025 22:27:56 GMT

Hi MaryK4,

Yes, I answered the interview as you described and the RMD Excess Accumulation Worksheet D did have IRA checked.

The problem was that when the program checked my return for errors prior to filing, it was requiring that I fill out the RMD Excess Accumulation Worksheet A (Required RMD amount). When I entered this number, the program was then requiring me to answer the question immediately above the RMD Excess Accumulation Worksheet which asked "If this is a distribution from a traditional IRA or qualified retirement plan, and ....". The problem is that the distribution was from an inherited Roth IRA, so the question does not apply and I was stuck - the program was making me answer a question that did not apply. Without answering it, I could not file my taxes. In any event, I ended up putting a 0 in the RMD Excess Accumulation Worksheet A (Required RMD amount) even though I did have an RMD. I know my RMD was correct, but by putting a zero in that field, the worksheet ignored the questions about RMD. It did not affect my bottom line taxes. Maybe subsequent TurboTax updates addressed this issue - I do not know.