TurboTax 2024 - new question about RMD

[DanaB27]

The RMD section has been updated please go back to your 1099-R entry and review the follow-up questions. At the end of the interview you should be able to select that you took all of your RMD.

Please note, if you met all of your RMD for 2024 then Form 5329 doesn't get filled out and isn't sent to the IRS. You might see TurboTax entering information on the "Additional Retirement Account Smartsheet" on Form 5329 (if you switch to forms mode in TurboTax Desktop) but this Smartsheet doesn't get sent to the IRS.

Please follow these steps in TurboTax Online:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. Continue until "How much of the $XXXXX was a RMD?" screen and select "Only part of this distribution was a RMD" and enter the amount of RMD /or select "The entire distribution was an RMD" (if this distribution includes RMD for other IRA accounts then you included the amount here)
5. Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
6. On the "Review your 1099-R info" screen click "Continue"
7. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024, otherwise select what is applicable. 

In TurboTax Desktop:

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 enter RMD for this account 
4. On the "How much of This Distribution Applied to your December 31, 2024 RMD" select "Some of this distribution…" and enter the RMD amount / or select "The entire distribution applied…"  (if this distribution includes RMD for other IRA accounts then you included the amount here)
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" if you met all of your RMD for 2024, otherwise select what is applicable. 

@angelbabygirl 

[Jarhead_68]

Agree. I rolled over an IRA from one broker to a new broker, and now TT assumes I had two separate IRAs with double the RMD but only distributed half what I should have taken. You can imagine how that blew up my tax bill. Like others, I can lie to TT by telling it the old account had the same RMD as the distribution made to the date of transfer, and adjusting down the RMD on the second, new account by that amount. 

AND then, a second issue: neither brokerage showed any amount for state distribution, but TT flagged an error because that box 16 was empty. TT sent me to a work sheet wanting an amount, but again, I don't want to lie to TT--if the programming is this bad, you can't be certain how they will run the final calculations on your return with fudged numbers. IRAs are not some esoteric foreign partnership levered up with cryptocurrency; you'd think TT would have a handle on basic IRA taxation by now.

[Jarhead_68]

I just replied with a similar problem--one account rolled over from old broker to new broker.  TT assumes two separate accounts (as in your example) and doubles the RMD for 2024. Like others, I can fix it by lying to TT, but have no confidence the final return will be accurate when filed. 

[debkrech2010]

I don't get those followup questions.  Went back and even shut down turbotax and reopened thinking i didn't have latest version but no luck it said I did.  I did find away around the problem of one account covering for others but it required manually adjusting the 5329 which I shouldn't get in the first place.

[DawnC]

Delete the 1099-Rs and re-enter them.   Don't file with Form 5329 if you don't owe a penalty.  @debkrech2010 

How to delete forms in TurboTax Online

How to delete forms in TurboTax Desktop

Where do I enter a 1099-R?

[LKathryn]

Have you received a solution? because I am having the same issues & getting no where.  Intuit HAS to know this is a problem. 

[Jarhead_68]

LK: I entered each account as separate IRAs, and on the first account I entered the RMD equal to the amount of the distribution from that first account. Then I entered the second account, entered the remaining distribution amount, and for the RMD, subtracted the first account RMD I entered, so that the two accounts together totaled the correct RMD for my IRA. This finally got me to the correct distribution and the correct TOTAL RMD. Also, as you finish the entry process, TT has a question asking if you have any accounts for which you failed to take a distribution short of your RMD. Be sure, for each account, to check the box that says "None of these" apply. 

Good luck!

[debkrech2010]

LK and Jarhead...   Jarhead's idea works I however could not get the pop up questions that Jarhead spoke of.  I reloaded the software and tried every thing I could think of to refreshing screens but never did get them to work, instead I filled in the 5329-T Part IX form behind the scenes filled in the smart worksheet section and lines 52b and 53b which showed I had taken a larger distribution than what was required.  And the IRS accepted that.

[cpschade]

I was advised to lie to the software.  That worked, but of course, anything goes wrong, it's on me.  But it was a TT rep who gave the advice.

Basically, what I did was to say that every 1099-R  entry I made for an IRA was the exact amount of RMD required for that account.   TT has no way of confirming that, so it figures I've satisfied my RMD.  I keep a spreadsheet of RMDs for all IRAs and make darned sure the ones I take total to the total RMD for all accounts. 

TT should either ask for the total RMD amount required for all accounts, or for entry of RMDs for each account, whether or not one has taken a distribution from that account and received a 1099-R.  But the way it does it is nuts.

Sorry to be so slow responding, but TT messages went into my spam folder and I just saw them.