I made three IRA distributions during 2024: one RMD, one QCD, and one Roth conversion. I received a Form 1099-R for each.
I withheld taxes from the RMD sufficient to avoid a late estimated tax payment penalty. I.e. By paying over 110% of the tax due for 2023. I did not withhold taxes from the QCD or Roth conversion.
For 2024, TurboTax includes two new entry request screens when entering 1099-R data.
- Let’s get more information about your RMD.
- Just a few more details about your RMD.
On the screen “Let’s get more information about your RMD”, it asks for “Required Minimum Distribution Amount”. This is a required entry for each distribution.
On the screen “Just a few more details” it states the following:
“It looks like the difference between your RMD and what you took out is $1,100”.
This screen appears only if the RMD shown on the 1099 entry screen is less than the total RMD taken. The issue is – My QCD was a separate 1099-R. The sum of the QCD plus the 1099-R for the RMD was greater than RMD actually required.
For the “Just a few more details” screen, there are two options:
Yes, I took out the entire remaining amount during the CORRECTION WINDOW.
In reading the “Learn More” it describes the CORRECTION WINDOW as “This is the date when the IRS formally acknowledges that you owe a penalty for the shortfall”.
No, I did not.
Entering the RMD for each distribution amounts to a huge tax due.
Bottom Line:
Is the following correct as I will pay the balance due when I file my 1040-SR for 2024?
On the screen, “Let’s get more information”.
As a required entry, enter 0 for the Required Minimum Distribution Amount for those distributions I did not withhold taxes. Report the RMD only on the screen where I withheld taxes.
On the screen “Just a few more details”
Select, No, I did not.
