RMD expressed in dollars and cents

[RC519]

TurboTax asks user to enter RMD amount as a follow up to 1099R entry. Then elsewhere on 1099r worksheet it generates, it drops the cents and then has an issue since that number is less than the RMD amount ! The only way to satisfy the system us to leave off the cents which isn't totally accurate. On same worksheet, in RMD section there is a line B where this same number is used and called the distribution. I believe the correct number here would be either the whole distribution or the whole distribution less the amount converted to Roth.

[DanaB27]

Yes, you should leave the cents off when entering the RMD.

"You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3.

If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total." (IRS)

Can you clarify what line B you are talking about? Please be aware that RMD's cannot be rolled over or converted.

[RC519]

Thanks for reply ..

I think TT should round at entry instead of allowing cents to create such issues.

TT had a problem when the rounded version was less than the amount entered and the TT generated 1099r worksheet has an RMD box with lines A,B,C. I think B was the amount "distributed" and I may have added confusion to that .. thinking it was the "whole" distribution - when I took my RMD, I took a little more to round up to next 1k. Then I took another distribution for Roth conversion. So, I now believe the total distribution in this case refers solely to RMD because these words are in the RMD "box" 🙂

[RC519]

Gotcha, I learned the hard way that I should round the RMD amount instead of entering it exactingly.

TT provides a space for the cents (39 cents in my case) then freaks when the softrware rounds it and the now-rounded number is lass than the amount I entered. As part of the "freak-out" it generated this worksheet to begin documenting or otherwise dealing with what it thinks was too small of an RMD.  On that 1099R worksheet, partly attached, it shows the section B that I was concerned about, but this isn't referring to my whole distribution, just that pertaining to the RMD. The form goes back to blank after I (finally) do the rounding and the whole "freak-out" goes away. Too bad I can't get all my wasted time back .. TT always has these "gifts" for us to figure out instead of just being happy customers 🙂