rmd calculation error

Forum|Forum|1 year ago
January 28, 2025
1 reply
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I have two IRA each with an RMD component. One IRA roundup the RMD amount and works fine. The other IRA has an RMD that rounds down. This RMD gets flagged when you view the form even though it processed OK like the other IRA when entering all the info.

The work around is that I have to manual adjust the RMD amount on the rounding down amount to get the red flag removed.

It would appear that while the rounding down is correct, internally the process is not using this value in calculating if there was an over payment in the RMD amount.

I have a pdf showing the problem but cant find a way to share it here.

MarilynG

Level 15

Glad you found a workaround to the RMD rounding issue!

You're not the only one experiencing this issue; here's more discussion on the RMD Rounding Issue.

The RMD issue is currently under Investigation, although we have no timeline at this point of when it will be corrected.

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traverse517Author

Level 2

I just downloaded the updates for Feb 5 and the problem has been resolved!

AmyC

Level 15

Problem remains for me, even after the 5 Feb update.

You can take one withdrawal and cover all accounts. The IRS just wants to ensure you are taking the minimum out each year for all that you have.

When you enter the 1099-R, the program asks if you took the full RMD required or less, meaning across all accounts that you have.

If you took your full RMD from all accounts - Enter a value less than or equal to the payment amount on the 1099-R on the RMD required screen.
If you did not take your full RMD, select no and enter the nontaxable amount.

This is not part of your tax return, this is the program trying to determine if a penalty needs to be calculated.

@dbs5778

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