Mac Desktop 2024 Turbotax error in 1099R RMD excess distribution worksheet:
RMDs are computed to cents and are reported on 1099-R at that precision. In the Turbotax 1099R worksheet, distributions at or above the previously determined RMD are calculated (to perhaps be used later for potential rollover to another retirement (ROTH, etc) or to a qualified charitable deduction. The above worksheet has the proper (to the penny) RMD amount for 2024, but the worksheet item B (plugged from that precise amount is carried forward whole dollars, and entering the precise RMD amount is item A is also rounded. The result is that the worksheet is now shown to be in error (as being less than the correct RMD amount) and can't be corrected to allow filing. This is in the current Mac desktop product updated as of 23 Jan 2024. Help is needed!
I have the same problem with the Windows Premier version. Not only should the amounts on lines A & B not be rounded; in the Windows version Line B seems to the RMD amount rather than the gross distrubtion from line 1 of the 1099-R. we won;t be able to file our returns electronically until these errors are resolved.
Did you try leaving off the cents when you enter the 1099R so it will match?
Goo lord Almighty....the problems with the RMD entries are far worse than I would ever have expected.
They really fouled up the RMD questions & calculations this year !!!
I am seeing the same issue with the Windows version. TurboTax was updated last Thursday, 1-23-25. I can drop the cents, and it will work. Also, ran the error checker and all is ok with no cents.
Have another 1099R form and its cents is 70 and never an issue.
I am using TurboTax 2024 Deluxe and the1099R that is working is Spouse 1 and Spouse 2 has the issues. The data is duplicated and from the same investment group. The only difference on the 1099R is name, SS number and amount of income. No taxes withheld.
1-30-25
The update version [phone number removed] did not fix this issue.
1-31-25
The update version [phone number removed] did not fix this issue.
2-1-25
Cleared all the browser history, download history, cookies, other site data and cached images and files.
Also, the computer was restarted.
The RMD box A still has the issue.
2-5-25
Did a new 1099R Form for Spouse 2 and still has issues with RMD box A.
Turbo Tax version level: [phone number removed]. Please, Fix the web site so that it will accepted full version number.
2-6-25
Updated to Version [phone number removed] Version number [phone number removed] [phone number removed] and now have the same issue with both 1099R RMD entries. RMD excess line A both shows nothing. Like the photo above.
Also set up a new file and using 0293 and get the same results with both 1099R RMD amounts not showing on RMD excess line A both shows nothing. Like the photo above.
2-11-25
On 2-6-25 updated Windows Edge and the RMD Box A turn to normal from previously being red. Was able to key in the RMD amount in Box A without any issues. On 2-7-25 filed my 2024 taxes via TurboTax E file.
Today 2-11-25 my bank account is showing a deposit for Friday.
For me the problem is over!
If you lie on the 1099-R input; then it won’t reconcile the with the one the company sends to the IRS. Probably wouldn’t be caught; but if they automate the audit process it would be caught. I know that Hawaii wouldn’t allow rounding on numbers that also get reported to them. Better Intuit should fix their software.
For most people, using and calculating RMD's rounded may work just fine. My financial institution (Schwab) however, does 2 of the 3 calculations on my IRA's to the penny and reports them to the penny. The 3rd RMD is required (and must be self calculated) for a beneficiary RMD (pre 2020, so RMD's for the lifetime of the beneficiary). I can, I've discovered, calculate that self-calculated number either to the penny (via several online calculation services) or to the whole dollar (same), but BECAUSE RMD's can be paid (not calculated - paid) from your own selection of the IRA's that you wish to use for such payment, their total and source, according to the IRS, must be precisely identifiable. That's what this worksheet box is supposed to do - make sure you're verifying sufficient payment or overpayment (from all your IRA's) REGARDLESS of which IRA's are the ones from which you're making payment. All the values involved in this calculation and eventual reporting to the IRS should be to the penny. Further, overpaying RMD's may be beneficial to anyone who wants to take their excess withdrawal and plow it into a Roth or other retirement arrangement, OR turn the excess into a non-taxable charitable contribution. Both those circumstances require correct calculation and reporting of the RMDs involved.
These calculations and apportionment of funds from multiple retirement accounts has got to be right, not just "whatever I choose"... There's a substantial penalty (perhaps not monetary, but certainly auditability to the IRS's gain) that I (and you) should want to avoid. There's no penalty for requiring all RMD calculations or payments to be to the penny, it's easy to do, and it should be easy (required?) for Intuit to spend brief time to examine and solve the problem. Without a formal way to post such a bug report at Intuit, I'm hoping someone will help get our discussion here to someone who can get it fixed. Thanks for all your feedback in the Community.
I also have the same problem and nothing seems to fix it, even overriding line B in the RMD Excess Accumulation Worksheet.
Thank you for your valued feedback. This situation has been resolved. Please clear all of your browser history and then review your 1099-Rs and RMD questions. See the link below for assistance and please update here if you need to.
Me too, and my TurboTax installation just updated today when I opened it, so they have not resolved the issue yet.
I have $xxxx.35 as the RMD amount, but the program 'ROUNDS' it on the RMD Excess Accumulation Worksheet on both the A and B rows have the exact same rounded number like you do, but I cannot continue pasted the Smart Check since the app is advising that I need to correct their rounded number in the RMD amount.
If they do not fix it, does that mean I wasted money purchasing TurboTax since it won't let me continue on to file my taxes using it?
The 1099 R entry error RMD reporting has certainly NOT been resolved for the Mac TurboTax Premier software updated on my devices today (1 February 2025). In fact, it behaves exactly as described earlier in my posts and those of other users. For your review, attached here is a screenshot of this latest updated version of the software. The update completed successfully, had no new forms, and still exhibits the rounding and presentation error(s) in the RMD Excess Accumulation Worksheet that is part of 2024 Form 1099-R "Distributions from Pensions, IRAs, etc"
Your instructions to clear our browser history were unusual for our situation(s) - using the downloaded Intuit TurboTax desktop applications - perhaps beneficial for your online customers. We'd appreciate a re-examination of the issue, so we can complete our tax prep without these errors.
@DianeW777 I think the only thing they fixed for RMD so far is the Continue button not working right. You had to keep clicking Continue the number of times for the number of 1099R forms you entered.
It is not corrected on TurboTax for Windows. Experiencing the same rounding error concerning RMD reporting as others noted here and just did another update (2/1/25, 2:00 pm PST).
If you leave the change off and just enter it in whole dollar it will go through.
As described elsewhere in this thread, there is a real issue about just assuming you can round (from a precisely known reported value) the reconciliation of the amount considered the RMD portion of the total on the 1099-R, especially when:
• The 1099-R is probably issued by a financial entity that computed, knows and has already reported the actual portion (to $.01) to the IRS.
• One or more of the 1099-Rs with an RMD may require special treatment (like certain beneficiary IRAs) and its RMD was hand-calculated and not reportable in advance to the IRS, but still must be reconciled to the penny.
• You may be reconciling multiple RMDs with one, two or all your 1099-Rs which can be reported as fulfilled from just one (or more) of the 1099-Rs you've received (ie: You can fulfill an RMD's requirements with excess distributions from another retirement account.).
• Excess distributions from a retirement account (beyond the portion used to fulfill RMDs) can also be a) rolled over to another new or existing IRA - where the "pennies" are going to be required - or b) optionally designated as a special type of non-taxable charitable contribution - also requiring precise accounting.
These are just the basics and all are susceptible, because of the complexities (we've only investigated our own situation, which we believe isn't that unusual), to triggering an audit, even if there's less than a dollar at stake. We're aware that we can "fudge" the reconciliation to make the faulty software work, but we'd rather not, nor we guess, would Intuit who hasn't let me down since my 1991 MacInTax return! This thread seems to indicate that there is a common error in the Windows software too. Let's hope someone figures this all out.
This appears to have been fixed with an update today on my 2024 MAC version. It doesn't appear in red anymore and doesn't result in an error to be fixed. I still don't see the cents, tried to input them, but it still seems to round. It doesn't come out as an error when error checking anymore.
About rounding. Turbo Tax rounds all amounts. The IRS wants all amounts rounded. See IRS 1040 Instructions Page 23 3rd column Rounding off to whole dollars
I would have to disagree with your assessment that the IRS wants all amounts to be rounded. The reference you made said a filer "can" round. So it is optional, in my opinion. It should say "should" if that is what they want.
It also says, "If you do round to whole dollars, you must round all amounts." So If I decide not to round when copying amounts from, for example, a 1099, Turbo Tax should not round in the worksheets. But they do seem to round in the final form, so you do have a point there.
Also fixed in today's software update for Windows users! Though I still can't figure out what RMD Excess Contribution Block is for or does. Seems unnecessary tio me.
Like @carltonroe , I disagree with your interpretation of the instructions associated with reporting Income (the name of the document section from which you quote). Those instructions do seem to specify rounding is optional ("can"). You may forget that some taxpayers fill out paper forms with a pen or pencil, and I can't recall (and I'm old enough to do so) getting my tax form rejected by entering income or any other number precisely. I'll grant you that it's to the benefit of the IRS to accept rounded approximations - even to require software that prepares tax returns to do so in submitted forms, but this terrible "reconciliation" of RMD combinations and summarizations is on a WORKSHEET which is supposed to help me (and Intuit, I assume) to get the reporting of a certain taxable activity - which notably could easily be audited, is too complex, and has as much as a 50% penalty for getting it wrong - exactly correct.
How about this: All numbers in non-filed worksheets should allow entry at full precision and round their output only if it's destined for a field that must be reported as rounded (IRS forms, other worksheets and data fields that work with whole dollars, etc.).
Kudos to Intuit for not continuing to make unrounded input compared to its rounded equivalent an error so we can proceed to file our taxes. I'm also a teeny bit alarmed that this community forum seems to be where technical problems are getting reported, simply by mentioning them. I looked everywhere I could find where one reports a bug, gets an acknowledgement, allows you to track it, gets a resolution (either way). I've fallen in with lots of knowledgable and enthusiastic users here, but who answers for software engineering? On a positive note, I'm piling up lots of "badges"!
I notice that Intuit seems to allow (and keep) precise values in those double-click total detail box gizmos and handles the rounding of those totals where required. If they're clever enough to do that, they could easily fix RMD reconciliation to make some sense and work properly.
I to have this problem. I have 7 IRA accounts and took my RMD out of 4 of the accounts. I do not see a way to tell turbo tax about the accounts that I did not take any payments from. I cannot file my taxes until I know the correct way to make the entries in turbo tax. I have been using turbo tax for thirty years, and suddenly I cannot file my taxes. Please let me know how to fill out the form correctly so that I do not get errors and penalties!
I'm sorry @dochs, that I'm in complete sympathy with you. Without acknowledging that I even know what I'm talking about, it seems the RMD worksheet is unusable (and certainly unexplainable) as of the latest updates.
Ideally, lines A and B in the 1099-R RMD section should reflect A) the calculated pre-determined 2024 RMD for the retirement account and taxpayer represented by this 1099, and B) the portion - in dollars from this 1099-R - chosen by the taxpayer to help fulfill their total 2024 RMD obligation for 2024 This could then allow proving the total of all line B's to be sufficient to satisfy the total of all line A's, and to determine the excess distributions as the difference between the total of each taxpayer's 1099-R's and the total of all line A's of the taxpayer.
But, of course, this won't work, as line B is plugged from the RMD "gross distbn" [sic] field or from box 1 or 2a, so you can't indicate how much of this 1099-R contributes to your total RMD obligations.
Such a worksheet would be a convenient part of my tax preparation software. Oh…