Required RMD Amount to Report on 1099-R in TurboTax

[davidsilverman2-]

I have several Fidelity IRAs (two SMAs and one self-directed account) and two annuities.  The distributions from my annuities greatly exceed the RMDs required from those annuities.  I also made a number of QCDs from one of the Fidelity IRA accounts.  I subtracted both the RMD excess distributions from my annuities and the QCDs from my required RMD and took the remaining RMD from one of the Fidelity IRAs.  So now the question for TurboTax is how much to report as my "required" RMD on the 1099-R from the one Fidelity IRA where the remaining RMD was taken.  Do I just report what Fidelity said I owed from that one account?  Or do I add together the required RMDS from all of the Fidelity IRAs (I didn't get a 1099-R from the Fidelity IRAs where I made no withdrawals)?  Do I subtract the overage from my annuities?  Do I subtract the QCDs from the "required" amount?  HELP!!!

[DanaB27 · Accepted solution]

Please follow these instructions for 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 that you used for QCD
3. On the "Required Minimum Distribution" screen enter RMD for this account
4. On the "How much of This Distribution Applied to your December 31, 2024 RMD" select "Some of this distribution…" and enter the RMD amount that was applied towards the RMD 
5. Answer the "Transfer to Charity Screen" and continue through the questions
6. On the "Review your 1099-R info" screen add your other Form 1099-Rs and answer the RMD questions as mentioned in steps 3 and 4. 
7. After entering all Form 1099-Rs click "Continue"
8. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "An IRA..."
9. On the "Total RMD for all other IRAs" screen enter the RMD from your other IRAs (where you didn't take a distribution from).

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 for QCD
4. On the "Do any of these situations apply to you?" screen select "I transferred all or part of this money directly to charity"
5. Continue until "How much of the $XXXXX was a RMD?" screen and select "Only part of this distribution was a RMD" and enter the amount of RMD.
6. Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
7. Enter how much your transferred to charity and continue through the questions
8. On the "Review your 1099-R info" screen add your other Form 1099-Rs and answer the RMD questions as mentioned in steps 5 and 6.
9. After entering all Form 1099-Rs click "Continue"
10. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "An IRA..."
11. On the "Total RMD for all other IRAs" screen enter the RMD from your other IRAs (where you didn't take a distribution from).

[davidsilverman2-]

That was very helpful, especially since I rarely use the Interview method for entering info.  One follow-up question:  I entered the RMDs required from the IRA accounts I did not withdraw from, as you suggested, but where does that info show up in the tax forms?

[DanaB27]

You won't have a entry on Form 5329 since you met all your RMDs but you can see it on the TurboTax worksheet. Look for the Smart Worksheets From 2024 Federal Tax Return  and then scroll down to "Form 5329: Additional Tax on Retirement Distributions (Taxpayer) -- Smart Worksheet". 

In TurboTax Online:

1. Select Tax Tools on the left and then Print Center 
2. Select Print, save or preview this year's return
3. Select federal return and choose to print/view everything include all  TurboTax worksheets.

In TurboTax Desktop:

1. Click on Print Center on the top right
2. Select  Specific Forms
3. Select Form and supporting statements
4. Select Form 5329 from the list

Example of $8,000 RMD distribution from an IRA with $3,000 RMD and another IRA with $5,000 RMD  (nothing withdrawn from this account):

 

[davidsilverman2-]

I definitely entered the RMD amount from the IRAs that I did not withdraw from in the Step-by-Step interview (I double-checked), but no 5329 shows up when I click on Forms and Supporting Statements to print.  When I search in Forms, the 5329 is blank but I do not see or know how to find a Smart Worksheet for that form.  

[davidsilverman2-]

My wife and I both had IRA accounts from which we did not take RMD distributions because the RMDs were satisfied by the withdrawals we each took from one IRA account.  In the Step-by-step instructions, it asks if there were any missed distributions from other IRA accounts so I can provide the total required RMD amount, but that question does not come up for my wife.  I just get taken back to the 2024 Income Summary after answering that question for myself.  How do I provide that info for her?

[DanaB27]

I do get the follow-up questions for both the taxpayer and the spouse. Did you enter a Form 1099-R for her?

It seems I only got the option to see Form 5329 and the "Form 5329: Additional Tax on Retirement Distributions (Taxpayer) -- Smart Worksheet" because I had the Form 5329 open in Form mode.

Since you met all of your RMDs you do not need to file Form 5329.

[davidsilverman2-]

I actually prepared (haven't yet filed) three 1099-Rs for my wife:  one for her IRA RMD withdrawal, one for her SE 401k RMD withdrawal and one for her SE 401k rollover into her IRA, since we closed that account at the end of the year.  But since we met all of our RMDs, I won't worry about the 5329 or its worksheet.  Thanks.

[davidsilverman2-]

p.s.  I just found the 5329 Smart Worksheets at the bottom of the Forms 5329.  I was able to add the RMD not withdrawn from my wife's SEP IRA on that Worksheet.  So, for future reference, you can find that in Forms mode if it doesn't show up as a question in the step-by-step mode or in Print Forms and supporting statements.

[KarinB1]

After I finish entering all 1099-R information, no screen asking"Did You Miss a Required Distribution From Any Retirement Accounts?" comes up.  The next question that comes up is about "disaster distributions," followed by Roth IRA ownership and nondeductible contributions.  

I took 100% of my RMDs from just one of my two IRAs.  The other IRA had no distributions and did not generate a 1099-R.  Given that the question about missing RMDs does not appear, how do I report the total RMDs calculated and taken in 2024?

[davidsilverman2-]

I am not a tax expert but at the bottom of Form 5329 (Part IX, to be exact) there is a worksheet you can use to show that you have taken the full amount of your RMD, even if it all came from one IRA.

[DanaB27]

Did you check the IRA/SEP/SIMPLE box when you entered the From 1099-R from the Traditional IRA? What is the code in box 7? You are 73?

@KarinB1