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Level 2
posted Dec 1, 2024 5:30:53 PM

How to document both Traditional IRA AND Inherited IRA

I have a traditional IRA with an excess contribution through Empower Retirement from 2021 that was not withdrawn until 2023. I also have an Inherited IRA from Fidelity that I take a yearly RMD on.   I only received a 1099-R for the RMD on the inherited IRA and have entered it in TT.  But TT is reducing the excess contribution fee as if the withdrawal for the RMD was taken from the Empower IRA. How do I keep these two separate?

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1 Replies
Expert Alumni
Jan 14, 2025 1:46:51 PM

To clarify, did you report the 2023 withdrawal in your 2023 tax return and was it reported on a 1099R? If so, you shouldn't have this issue. This might be because of how the 1099R for 2023 was coded and the excess contribution amount is carried forward in your 2024 tax return on the RMD form (Form 5329).

 

If you have a desktop version of Turbo Tax, this can be easily corrected on the form.  If using the online version, correcting it could be problematic unless you switch to the desktop program for this year only.

 

Let us know!!