Inherited IRA RMD amount requirenment

[jon857]

I've taken my distribution and entered my 1099-R distribution data in TurboTax Desktop. Now it requires I fill in an amount for the RMD due by end of calendar year. The best I can research states that as an ineligible, child beneficiary, I must follow a 10-year distribution rule to deplete the inherited, traditional IRA from my mother.

Do I enter '0' for the required RMD in TurboTax because there is no IRS table to calculate a RMD? Or do I prorate the balance over the years remaining and insert that value?

My question only is what I enter in TurboTax for the minimum required RMD. I've already distributed a prorated amount of the total balance.

Reviewing IRS 590b it appears that I can distribute a prorated amount of the IRA each of 10 years or take a lump sum at the 10th anniversary. So is this question about declaring a minimum RMD a TurboTax artifact or is their some IRS requirement that is used to determine a minimum?

[DavidD66]

You are correct about the RMD requirements for your inherited IRA, as long as the person you inherited it from was not yet subject to Required Minimum Distributions.  If they were, then you would be as well, based on your life expectancy.  If you are not subject to RMDs, then you can enter $0 for the RMD amount due by the end of the year. 

[jon857]

Thank you for your prompt posting. Unfortunately I am not classified as a "designated beneficiary" by IRS rules so I am not allowed to invoke a lifetime based schedule. This designation is restricted to the owner's surviving spouse, the owner's minor child, disabled or chronically ill individual & not more than 10 years younger.

As per the IRS, "Distributions to a designated beneficiary who is not an eligible designated beneficiary must be completed within 10 years of the death of the owner. This is where I am classified.

So my question is essentially focused on what is the appropriate response within TurboTax (and with the IRS) for my RMD amount. I am not comfortable with answering with 'zero' as the program suggests which indicates no RMD is scheduled. I am looking for confirmation that indicating a prorated withdrawal based on the 10-year time frame and the yearly December 31 balance is appropriate.

I hoped that a wizard was available within TurboTax present a decision tree that guided the process but unfortunately I have found none.

[ericbarbt]

My inherited IRA was from my mothers IRA . She passed away in 2014 at age 80, so was taking for ~7 years, on joint return, then 10 more years from 2014 thru 2024, filed by my father as a widower. Now I inherited the remainder of the IRA and opened an inherited IRA account. I was instructed to put the prorated amount that we took out in 2025 in as RMD value by TT agent. ($39K)

Is this OK?

Eric T.

[DaveF1006]

Yes, this is correct. You are responsible for any RMD he was supposed to take in 2025 but didn't finish. If his total 2025 RMD was $39,000 and he took none of it, then taking $39,000 is correct.