RMD Withdraw

[iclarius49]

I have 2 IRA accounts. I took most of my required distribution from one account and increased the amount of taxes taken out to cover the withdraw from the other account. When I fill out my TT 1040, the question about the value of the RMD for this account (see the attached picture #1). Do I put the value of what the RMD would be for that account even though I took out the correct total for my RMD from both IRAs or the $152 that I took out from that account? 

EXAMPLE: 

1. IRA # 1 RMD Req't = $5,000

2. IRA #2 RMD Req't = $2,875

3. IRA # 1 withdraw = $8,000

4. IRA #2 withdraw = $152

TOTAL RMD withdraw for 2024 = $8,027 BUT I took out a total of $8,152 which is more that the require minimum distribution.

In TT, I put in a withdraw of $8,000 for IRA #1 but I am confused about what value I would put in for IRA #2? I took out enough taxes from IRA #1 RMD withdraw to cover the totals of both IRAs. I answered the question as shown in picture #2.

 

I'd appreciate a good answer since it is a significant change in my tax bill between the 2 scenarios.

Thank you,

George

[Mike9241]

keep it simple. since you took out more in distributions than the RMD requirement, for each IRA check that the entire amount was an RMD. 

since you have multiple accounts the tax laws say you can choose which account(s) to take the RMD from. They don't have to match the RMD computed for each account. Just the total withdrawn must equal or exceed the RMD for the year.

alternatives

a) is to mark w#! 7875 as RMD

and then mark nothing for W#2 as to rmd

b) leave all RMD info blank. It's only used by Turbotax to alert you if you fail to take the RMD. It's not reported to the IRS that the distribution was an RMD. What the IRS does is compare the amount on line 4a if there or 4b to the total RMDs reported to it on forms 5695 that it receives from the IRA trustees and then compares that total to what was reported.

i follow practice b) and have never gotten anything from the IRS about failure to take RMD. 

[iclarius49]

Thank you VERY much for the response. If I understand you correctly, the easiest thing to do is to just fill in the 2 IRA Account 1099-Rs and ignore the RMD questions TT asks after I completed the 1099-R Payer Information page?

You cleared up how TT uses the data and THAT is very important in understanding that they do with the supplementary data. 

I'm not sure why TT asks the supplementary questions but the answers do affect my preliminary return value. When I left the value blank on the page that is:

"Let's get more information about George's Required Minimum Distribution"

(showing how much I should have taken out), my expected return jumps up a few hundred dollars.

With it blank, my RMD is correct on my 1040 so you just made my day.

I thank you so very much for the excellent response.

[VolvoGirl · Accepted solution]

Yes they changed it this year. The questions are confusing.  When it asks for the RMD amount you should just enter the amount from that one 1099R.

See these two posts by dmertz. He has a handle on it.
https://ttlc.intuit.com/community/retirement/discussion/can-i-determine-why-turbo-tax-thinks-i-did-n...

[dmertz]

@iclarius49 , your numbers don't add up.  $5,000 + $2,875 = $7,875, not $8,027.  It seems that you mistakenly added the $152.

I agree with what Mike9241 said.  When entering the Form 1099-R for the $8,000 distribution, indicate that $7,875 was the required RMD and when entering the Form 1099-R for the $152 distribution indicate that none  of it was RMD.

[VolvoGirl]

And how did you leave it blank on the Let's get more information about the RMD page?  When I leave it blank it gives me an error.  

[iclarius49]

I ignored the error message. You can't continue but when I checked the 1040 form, it was correct for my total RMD withdraw. 

[iclarius49]

The $152 is the RMD amount that I took out of the smaller IRA. The $2,875 value was the amount that TT tax thought I was light in my annual RMD.

I thank you for your good responses though. I didn't want to use my correct amounts so I made up numbers except for the $152 

[iclarius49]

Problem solved.

Thank you.

George