I have three traditional IRA accounts at three different institutions; each account has a required RMD. I took the required RMD for all three accounts from one account. Therefor I only have 1 1099R for all my RMD’s. On the step-by-step page TT says Lets get more information about your required minimum distribution. The information I inputted on this page only pertains to the account from which I took all my required withdrawals for all three accounts at different institutions. But it only asks for the RMD from the one institution that I took all my RMD.
At the bottom of the page there is a
Note: Do not include the RMD for other retirement accounts you my have. RMDs for other accounts should be entered separately.
What exactly does this note mean? I know the required amount of RMD from my two other accounts but as I go through TT premiere there is no place to enter the data. How do I account for the RMDs from the two other institutions?
If you are sure that you have satisfied all RMD requirements, then in TurboTax, on the form 1099-R for your RMD withdrawal, answer that The entire distribution was an RMD then on the following page, to the question What is the RMD for your account? enter the full amount of the distribution from that IRA account. There is nothing to enter for the other IRAs.
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.
thanks for your help MinhT! I am still curious what the note means when in the TT program there are no follow up questions regarding my other retirement accounts. Do you have any idea what that is about?
Note: Do not include the RMD for other retirement accounts you my have. RMDs for other accounts should be entered separately.
There are RMDs for each retirement account, IRAs or 401(k).
The IRS allows IRA RMDs to be aggregated among themselves (i.e. you can take RMDs from any IRA as long as the total is satisfied. RMDs for 401(k) must be taken separately from each plan.
Thanks for the answer but it did not answer the question
In other words, be sure to enter your required minimum distribution (RMD) for each 1099-R, and do not include the total RMD in only one 1099-R entry. This is what the statement is saying and as indicated, the RMD must be taken for each account. Your financial agency will automatically calculate this for each account based on your age.