Turbotax Premier 2024 Desktop edition - Form 5329 error with request for explanation.

[Disgruntled4]

I turned 73 in June 2024. It is my understanding that I have until April 2025 to take my 2024 RMDs.  I took most of them in 2024 but some remained. I took the remainder in January of 2025.  I have tried to document this using form 5329 in the frame labeled "Waver of Tax Smart Worksheet Lines A and/or B.

I enter the amount taken in 2025 along with supporting details and an explanation, but the program shows the entry in red and displays the error exclamation point and (Not Done) after the form number.

Do I use line A, or Line B?

How do I make the Error go away?

[VolvoGirl]

Since you don’t have to take the first  RMD until April 1 of the next year then just say the amount from box 1 on that single 1099R is for the whole RMD.  Say yes it was all the RMD and put in the amount from box 1.

[Disgruntled4]

Good suggestion, but part of that distribution was allocated to a ROTH conversion, so I could not allocate the entire amount to the RMD.

[Disgruntled4]

VolvoGirl made a suggestion that does not work for me, as part of that distribution was for a ROTH conversion.

I am hoping that she or someone else can help with a way to correct the problem.

[VolvoGirl]

If your 1099R is for both RMD and a conversion you need to split the 1099R into 2 and enter another 1099R for it.  @dmertz 

[dmertz]

When TurboTax asks how much RMD was required, indicate the amount of the distribution that was RMD.  When asked what you did with the money, indicate that you moved the money to another retirement account, that you did a combination of rolling over, converting and cashing out, then indicate the amount converted.

[Disgruntled4]

Thank you for your response.

That is exactly what I did. However the portion of the distribution not allocated to the ROTH conversion was not sufficient for the RMD from that account. Although I had other IRAs that I took RMDs from, I was short by about 4,000 in this account. As a result, it forces me to use Form 5329. I did take the remainder of the RMD this year which should be legal as I have until April 1 to make the "Correction" as I only turned 73 last year. The problem is that I now have errors on Form 5329 that I don't know how to deal with.  

[Disgruntled4]

How does one legally split a 1099-R into two different 1099-Rs?

[VolvoGirl]

But just enter the amount that was for the RMD on that 1099R when it  asks how much was the RMD not the total RMD you need to take.  

[Disgruntled4 · Accepted solution]

Fixed!  

I revisited the offending 1099-R and saw that I needed to report the required RMD only if it was due on January 31st.

I had not previously seen the statement ...

"Do not include RMDs which are due on April 1. RMDs for the first year you're required to take a distribution are generally due on April 1."

I changed the RMD due by Dec. 31, 2024 to zero, Deleted the Form 5329, and all is well

[VolvoGirl]

@Disgruntled4   Did you know there was a program update today on Feb 20, 2025 that fixed all the RMD questions?  There was a major bug  with entering 1099R forms.  

[Disgruntled4]

That may explain why I was having the problem. The update probably changed the text regarding how to enter the RMD for the first year.