Question

RMD error

Forum|Forum|1 year ago
January 25, 2025
3 replies
0 views

O 1/22/25, I completed my taxes on turbo tax deluxe and was about to file. There were no errors upon review. I decided to wait another day. On Thursday, I re-opened turbo tax and download/installed updates. Upon opening the return, another review for errors NOW showed the following statement that was NOT there yesterday...

"RMD amount should not be less than the distribution amount that is for the RMD."

I checked my data entry and it was correct as entered days earlier. The RMD was $10,938 for 2024 whereas my total withdrawal from the just one account was $14,000. I can only conclude that the update dowloaded on Thursday introduced an error or glitch into the program. A phone rep at Intuit said an uodate on 1/25/25 would correct this issue.

Where is the update? Thank goodness I did not "file" on Wednesday! How can Intuit sell an unfinished product and expose customers to erroneous filing scenarios!?

VolvoGirl

Employee

@dmertz did they update the program wrong last Thursday?

D

dmertz

Employee

It does seem that they made a change that increases confusion by indicating inappropriately on the page that asks how much RMD was required that the amount distributed was the RMD amount rather than the gross-distribution amount. This change might have occurred with the 1/ 23/2025 update, but I haven't been following it closely. There does not appear to have been a subsequent update.

It appears that an appropriate result is still possible by reporting the way that I have suggested previously: Indicate the amount that was required to be taken is the amount of the particular distribution that actually went to satisfying RMDs, and, if some portion of the RMD for the individual's traditional IRA went unsatisfied, include that only on the entry of the Form 1099-R that includes the last traditional IRA distribution made that year (making the required amount for that account be the amount distributed plus the amount of RMD that was unsatisfied). It seems that I have difficulty reproducing the symptom since I know what the software does with my entries, so I seem to just make entries that produce an appropriate result.

H

HardToThrill

as of 1/26/25 8:53, this is still an issue. The 1099-R process is broken. No matter which way I try, I still get the message 'RMDamount should not be less than the distribution amount that is for the RMD'. My Gross Dist. is 3x greater that the required RMD I have entered. Hey TurboTax!.......fix this!!!

R

rmcc852

To clear the error, when it asks for the RMD for that year, enter a $1 more than the actual amount. Leave the amount actually withdrawn the same as it appears on the 1099-R. When it asks you on the next screen did you withdraw the additional $1 during the collection time period, click no. The taxes owed on less than a dollar will not change refund/balance amounts and no additional penalty will be added. The error will disappear.

P

pk26

Thanks rmcc852!

I was able to get by the error yesterday but I’m not exactly sure why as the information I re-entered was the same.

My scenario was that my total distributions exceeded the RMD. For example:

$40,000. 00 = RMD

$50,000.00 = Total Distributions

Number of IRA Accounts = 1

TT Deluxe Desktop Retirement Account Questions:

TT Question: Was the withdrawal an RMD for 2024?

Selected: Yes, some or all of this withdrawal was an RMD

TT Question: Tell us how much of the $50,000.00 Paul received applies to the RMD that needed to be taken out.

Options

A) All of this distribution was an RMD

or

B) Part of this distribution was an RMD

I selected option B.

TT Question: Let’s get more information about Paul’s Required Minimum Distribution (RMD).

Paul received a distribution of $50,000 from this account. If Paul’s total RMD for 2024 was more than the amount taken out, there might be additional taxes to consider. What was the required distribution for Paul’s account in 2024?

I entered the RMD of $40,000.

In any event I’m all set. Thanks again for your reply.

P

Puli3339

It's amazing that TurboTax cannot fix a problem so simple and straight forward. How hard is it to sum up all the distributions of all IRAs and the RMD of all IRAs?

I don't have any social media account, otherwise, I would have used them to inform friends of this Turbo Tax problem.

TurboTax is getting really cocky.

J

jm152

Like others, I am waiting for the fix. I dread switching to another tax preparation program but I may be forced to do so. Does anyone have any positive experience with Tax Slayer? They look pretty good but I wonder how hard it would be to start from scratch with new software. I've been using TurboTax for as long as I can remember, maybe 10-15 years.

S

saxmaniacAuthor

Hi all-

I offered a fix about three weeks ago and by all accounts of others, it works. Simply enter the same amount for your RMD each time it is requested. Do not put cents in there only round up or down consistently as the case may be. I did that as a fix as well as others and it has worked for all. Not sure why others are having a problem here. The glitch in the software is that one of the pages fails to round up or down cents to the nearest dollar as the case may be. That is why you have to do it consistently. Every time it calls for your RMD make sure you consistently report it to the nearest dollar.