RMD error

[Thriftymee88]

As the 3/16/2025 TT version is still requiring users to enter the RMD amount for each IRA’s. An error is triggered if the user’s 1099 amounts entered doe not match each RMD. TT should be asking for the total ( gross ) RMD across all IRA’s. As long as the 1099’s are equal or greater than the gross RMD, TT should not return an error.

Example::

IRA #1: RMD1= 10,000.  1099 amt1=15,000

IRA #2: RMD2= 8,000, 1099 amt2=3,000

What’s done with the example should be perfectly acceptable. Would it be a a good workaround if we enter RMD1 as 15,000 and RMD2 as 3,000.. This will be accepted by TT without the RMD error and still satisfies the Gross RMD requirement.

[DanaB27 · Accepted solution]

If enter it with the steps below I do not get an error. But you could as workaround enter enter RMD1 as 15,000 and RMD2 as 3,000. You are not required to file Form 5329 if you met all of your RMD for 2024. TurboTax will enter the information in the "Additional Retirement Account Smart Worksheet" to check that you met the RMD but this will not be sent to the IRS.
 

Please follow these steps in TurboTax Online:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen ($10,000)
5. Continue until "How much of the $XXXXX was a RMD?" screen and select "The entire distribution was an RMD" ($15,000)
6. On the "Review your 1099-R info" screen add the second 1099-R 
7. Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen ($8,000)
8. Continue until "How much of the $XXXXX was a RMD?" screen and select "The entire distribution was an RMD" 
9. On the "Review your 1099-R info" screen click "Continue"
10. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024.

In TurboTax Desktop:

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R” and enter your 1099-R
3. On the "Required Minimum Distribution" screen enter RMD for this account ($10,000)
4. On the "How much of This Distribution Applied to your December 31, 2024 RMD" select "The entire distribution applied…" ($15,000)
5. On the "Your 1099-R Entries" screen add the second 1099-R 
6. On the "Required Minimum Distribution" screen enter RMD for this account ($8,000)
7. On the "How much of This Distribution Applied to your December 31, 2024 RMD" select "The entire distribution applied…"  ($3,000)
8. On the "Your 1099-R Entries" screen click "Continue"
9. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024.

Please see Can an account owner just take a RMD from one account for additional information.

[Thriftymee88]

Excellent explanation, concise and right to the point. Thank you very much.

[brtnsmth_tt]

Why doesn't TT just ask for the total RMD like the IRS does? Fudging numbers with the IRS just seems risky and dumb.