How do I review content relative to current year (2024) Inherited IRAs? Who is addressing current year (2024) system issue?

[tracypfisterer]

Who is addressing the current year(2024 returns) system compatibility /incompatibility with the 10 yr rule for inherited IRAs?

[fanfare]

For an inherited IRA, enter the amount if any that was distributed, and the calculated RMD amount, if any.

You have to say more about what you think the issue is.

@tracypfisterer 

[tracypfisterer]

Thank you for your reply. I did enter 0. It is true, it should be a simple entry with no "review" needed.

The program does not accept the entry and creates a perpetual “review “ cycle. Every combination of the prompted questions & responses 

arrives at the same conclusion to “review”. 

Further to this discussion, additional questions and clarity are offered below.

• Who @Turbotax will remove a system roadblock that is not applicable to 2024 returns for IRAs?
• Who @Tubotax is working on the program to address these systemic errors regarding 2024 returns, which include inherited IRAs for Designated versus Eligible Designated Beneficiaries?

2024 returns should be based upon the latest revisions to the Secure Act of 2019 found in Publication 590-B, updated in 2023 with further instruction in the references below. Final regulations issued in May of 2024 will be enforced in 2025.

• No RMDS are required.
• Taxation amt is calculated with no need to consider RMD amounts for current year return (2024).
• There are no penalties for 2024.
• System Roadblock is unnecessary.      

     Refer to:

• IRS Retirement Topics-Beneficiary: DEFINITIONS

• IRS Publication 590 b

• IRS IRB Internal Revenue Bulletin 2024-19, May 2024.

• IRS Retirement Topic How Beneficiary RMDs are determined

• IRS Retirement Topics-Required Minimum Distributions(RMDs)—>Calculating RMDs for designated beneficiaries after account owner’s death.

      System Clarity:  

1. Perhaps the current program is designed in anticipation of 2025 returns ?
2. The prompted questions are clearly written to determine a minimum RMD AMT perhaps tied to a life EXPECTANCY calculation(N/A for 2024).
3. Following the additional information in the link on screen: “How do I find this information” is also not applicable to current policy for inherited IRAS for designated beneficiaries.
4. The program must comprehend The Secure Act (2019) for 2024, which is affected by the death dates before or after 2020. Death Year is Captured.
5. Currently (2024), Designated Beneficiaries (DB) inherited by non-spousal beneficiaries, must fully distribute the balance of the inherited account by the end of the 10th year following death of original account owner. There is no need to capture what the minimum RMD amount is required vs the actual distribution for 2024 or the original owner's distribution.
6. How does the program treat distributions within the 10-year period?
7. Does the program consider the distribution a partial RMD of the original balance? A 100% RMD of current Distribution? or Zero distribution?
8. No distribution is required although they are being withdrawn as if they were required. 

Please advise how to proceed.

Many thanks @fanfare 

[fanfare]

if the owner who named you had reached the beginning of mandatory distributions, then you also must take a yearly RMD.

So, it depend on the age of the original owner and the RBD for that year of death.

As far as I know TurboTax does not take into account waivers that IRS may be allowing for 2023 and or 2024.

You have to be aware of and  request the waiver using Form 5329.

@tracypfisterer