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Returning Member
posted Oct 27, 2022 8:01:49 AM

How to manage RMD Tax reporting!

Last year (21 tax return) I had to do my first RMD because of my age. My Self invested IRA was invested with a Real Estate Apartment program. When I requested to the owners that I needed to meet my RMD requirement and sell some or all of my shares they were able to help me only by by selling off part of my shares in the investment. Selling off part of my shares was not necessarily OK with me as I did not need the money but was the only way I could get the RMD amount I needed to withdraw and report on my 2021 taxes . As it ended up the amount I received from the sell off was much more than what I needed to withdraw for the RMD. If I had with drew all of the amount I received from the sale it would have put me into a 22% tax bracket which would have been a costly move.  As stated it was not money that I needed at this time. So I arranged to pay the Recommended RMD on my taxes and invested the rest into another Self Directed IRA with Fidelity. 

I now of course have two self directed IRA's, one with the Real Estate investment Company for the rest of the shares I have with them and the one I created with Fidelity from the money left after I paid the RMD requirement.

My question is two fold. Do I need to report and pay  RMD from both of these self Directed IRAs I now have on this coming 2022 tax return? And if so how do I arrange the second entry on TurboTax?

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1 Replies
Level 15
Oct 27, 2022 8:14:28 AM

You can either take your total RMD (the sum of the RMD from both accounts) from one account or take some from both as long as the total amount accounts for the RMD for both. If taken from both you just report the 1099-R from both as usual telling the program that the distributions are for RMD.