First RMD for both IRA and Self-employed 401K; Can one be in December and the other deferred to April?

[sandy4042]

I gather from other posts that Turbo Tax will ask if you've taken the RMD. The IRA distribution will appear on line 4a IRA Distributions, and the Self-employed 401K distribution will be on 5a Pensions and Annuities.  Will Turbo tax accept yes (and an amount) and no (and a zero amount), and not flag it as not taking RMD for a first time RMD (taxpayer turned 73 in tax year).

[dmertz · Accepted solution]

The requirement is that your first-year RMDs be completed by April 1 of the following year.  The first-year RMDs can be split between the first year and by April 1 of the following year any ways that you wish. 

When asked by TurboTax, simply indicate that all RMDs were received.  This will prevent TurboTax from inappropriately preparing Form 5329 Part IX under these circumstances.

[sandy4042]

Ah, thanks, that makes sense.  It seems this first year of RMD one has the opportunity to calibrate the RMD income between the two years.  Does Turbotax get more specific in the tax reporting year of the April date (in my case 2025)...i.e., which RMD portion was for the previous year and which is for the curent year?

[VolvoGirl · Accepted solution]

No.  You just enter the 1099R.  Both April and the 2025 RMD will go on your 2025 return.  When it asks if you took the RMD you just say yes even though they are for different years.  

[jacste]

I have a question about your answer. First, I am using 2024 TurboTax Premier Desktop version. You said; "When it asks if you took the RMD you just say yes even though they are for different years. " However, after I enter my 1099-R info and the request for the RMD required (info from my IRA Form 5498), I am taken to a screen asking me to select one of the following:

The entire distribution applied to the December 31, 2024 RMD

Some of this distribution applied to the December 31, 2024 RMD

None of this distribution applied to the December 31, 2024 RMD

For me the correct answer is SOME of this distribution applied since the bulk of it was for conversion to my ROTH IRA. Using this data I am short of my 2024 RMD by $1,199. However, I did a distribution 1/2/25 for $4,500 which shout meet the 2024 RMF per the April 2025 requirement.

After selecting the SOME option, I'm asked "Amount applicable to Dec. 31, 2024 RMD"

QUESTION: this is not a YES or NO option. Do I enter in the the full amount of the 2024 RMD in this box even though it is partly done in 2025? Also, once I enter the amount that was converted to the ROTH IRA it doesn't add up to the amount shown on the 1099-R.

Can you clarify for me?

[sandy4042]

I'm the OP of the question.  I've since installed Premier version of Turbo Tax and gotten through the retirement income portion.  I may be in a different position than you, being as it's our first RMD year (husband just turned 73).  There was verbiage on the screen saying "remember if you turned 73  (tax year 2024) you don't have an RMD due December 31, 2024, instead it's April 2025)".  So I just responded No to the question "Did you miss an RMD for any retirement accounts?".  That took me out of any additional queries as to what the RMD was, penalty for under distributing, etc.  I am curious as to if I responded correctly.  Next year, I expect I will enter Yes I have an RMD due, and if I took out more than the RMD (for Roth or something else) and as long as the 1099-R amount for the distribution is greater than the RMD, I'll be OK.

[ThomasM125 · Accepted solution]

You responded correctly, since you don't have to take a required minimum distribution (RMD) in 2024. And yes, if you take out more than your RMD in 2025, you will be OK as far as taking your RMD in that year is concerned.

@sandy4042