RMD Accounting and Updates

[RSchneider46]

I have 4 Traditional IRA's. The total RMD for these 4 accounts is $11,500. In 2024 I received distributions from 3 of these accounts totaling $11,900. I have 1099 R's as documentation. Call these accounts IRA A, B, C, and D.

During the year I received  distributions from IRA-A and IRA-B that exceeded their individual RMDs by about $3,600. I received a distribution IRA-C that was about $200 less than its RMD. I did not received a distribution for my IRA-D account.  Overall the distribution for all of my IRA's exceeded the my TOTAL RMD by $400.  Accordingly, I should have met my TOTAL RMD for tax year 2024.

However, when documenting this information in TurboTax 2024 I got a question about IRA-C. TurboTax 2024 says "Let's get more information about your Required Minimum Distribution (RMD)."  It goes on to say, "You (me) received a distribution from this account. If your total RMD for 2024 was more than the amount taken out there might be additional taxes to consider. What was the required minimum distribution for your account in 2024." 

If I respond to the question for IRA-C with the actual calculated RMD, the tax return window at the top of the screen drops by about $80.  However, if I respond with the amount on the 1099 R for IRA-C the refund window doesn't drop. 

For a point of reference I looked at my 2023 return (TurboTax 2023) and saw that I inputted the same information but I did not get the request for more information about this account.

I am confused. All the distributions from my IRA accounts  are documented and included as part of my income. Yet TurboTax is under the impression I have not met my RMD for the year.  When I left the RMD portion of my return I got a message in red that I should hold off completing this section and return later on as an update was in the process of being developed.  Any idea when the update will be ready?  Any suggestions on how to satisfy documentation that I have met my RMD for 2024.

[MinhT1]

An IRA owner must calculate the RMD separately for each IRA that he or she owns, but can withdraw the total amount from one or more of the IRAs. 

If you are sure that you have satisfied all RMD requirements, then in TurboTax, on each RMD withdrawal, answer that The entire distribution was an RMD then on the following page, enter the amount of the distribution as the RMD amount for that IRA.

By doing this, you are telling TurboTax that all RMDs are satisfied and TurboTax will not calculate any penalty. The information you entered in TurboTax is to enable TurboTax to calculate any penalty where applicable, and is not reported to the IRS.

Similarly, a 403(b) contract owner must calculate the RMD separately for each 403(b) contract that he or she owns, but can take the total amount from one or more of the 403(b) contracts.

However, RMDs required from other types of retirement plans, such as 401(k) and 457(b) plans have to be taken separately from each of those plan accounts.

Please read this IRS FAQ for more information.