Turbo Tax and RMD

[las0210]

I turned 73 Feb 2024.  I didn’t start taking monthly RMD distributions from a traditional IRA until Aug 2024.  Thus, the total RMD distributions are less than the total RMD distribution.  I know I actually have until April 1 of this year (2025) to fulfill my 2024 RMD distributions.  However, I’ve encountered an issue in TurboTax.  I received a 1099R form for the distribution amount I did receive in 2024.  After I enter the information from the 1099R form, TurboTax asks if the entire distribution was an RMD, Only  part of the distribution was an RMD or None of this withdrawal was an RMD.  I selected option 1.  I then have to enter the amount the RMD should be.  I am then asked if I took out the remaining amount during the correction (?) window or No I did not.   I go through a bunch of other questions and get to an IRA Contributions Results.  On that screen it shows a $126 tax on excess accumulations in retirement account.  This is because the RMD distributions were less than the required amount even though I have until April 1st to withdraw the full amount.  To make matters worse, when I get to Federal Review section, the data I entered for the RMD is flagged and I get in a loop for Check this entry.  I may have to to a qualified tax person a TurboTax is not letting me get by the check info point.  Doesn’t like if I selected Yes, I took out the entire remaining RMD amount during the correction window or No I did not.  I spoke with a TurboTax Live Advice rep who was no help.  Any suggestions out there?

[VolvoGirl]

No.  Only enter the amount you took for the RMD or even enter 0 since you don't have to take it until April 1.  Go back through the 1099R questions again.  

[las0210]

If I understand correctly, I answer “I took full RMD amount in Turbo Tax.  Then, when Turbo Tax asks what the full RMD amount was supposed to be, I enter only the amount I took in 2024 as I have until April 1 to take the rest (which I actually have done already).  Does the IRS not look at the RMD amount in box 12b on Form 5498?  Please advise.

Thank you.

[DanaB27]

Yes, you will enter as the RMD for this account only the amount of RMD that you took in 2024. As VolvoGirl  stated you have until April 1 to take the rest of the RMD.

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R” and enter your 1099-R
3. On the "Required Minimum Distribution" screen for the RMD for this account enter only the RMD you took in 2024
4. On the "How much of This Distribution Applied to your December 31, 2024 RMD" select "The entire distribution applied…"  / or select "Some of this distribution…" and enter the RMD amount taken 
5. On the "Your 1099-R Entries" screen click "Continue"
6. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD".

The IRS will know that you have until April 1 to take your the rest of your first RMD.