topic Inherited IRA had to take an RMD. Paid 10% inc tax at that time. The prgram says the difference between RMD and what i took of $3876is subject to penalty. Why? in Retirement tax questions

Inherited IRA had to take an RMD. Paid 10% inc tax at that time. The prgram says the difference between RMD and what i took of $3876is subject to penalty. Why?

jdguffey5 — Thu, 19 Feb 2026 21:35:28 GMT

Re: Inherited IRA had to take an RMD. Paid 10% inc tax at that time. The prgram says the differen...

KrisD15 — Thu, 19 Feb 2026 21:44:49 GMT

There should not be a penalty for a distribution from an Inherited IRA.

When you entered the 1099-R, was the distribution code "4"?

What year did the original owner pass?

Was the RMD the RMD you had to take, or was it what the original owner needed to take for tax year 2025?

Re: Inherited IRA had to take an RMD. Paid 10% inc tax at that time. The prgram says the differen...

jdguffey5 — Sat, 21 Feb 2026 03:13:21 GMT

Yes, the distribution code was 4. My mom passed in January 2025. I know that the amount of the distribution was based on her age not mine. Does that mean she had to take the distribution? I will have to check if the RMD was because of her or done for those of us who inherited. There are multiple family members that also received distributions. This is so frustrating as this is the second tax program I've used to figure this out and there are so many people having problems with this issue! Thanks. Julie

Re: Inherited IRA had to take an RMD. Paid 10% inc tax at that time. The prgram says the differen...

fanfare — Sat, 21 Feb 2026 06:00:18 GMT

If your mom was taking RMD but missed it then any beneficiary or combination of beneficiaries can satisfy that 2025 RMD through distribution. That would require coordination.

Then your first beneficiary RMD is to be taken in 2026.

@jdguffey5