TurboTax 2024 - new question about RMD

Forum|Forum|1 year ago
January 11, 2025
2 replies
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It seems like TT 2024 is asking the question "Required Minimum Distribution Amount" after you enter the RMD amount taken from an account and answer that the total amount is RMD. Is it asking for the total amount of RMD for that individual IRA account or the total RMD for all the IRA accounts?

Best answer by VolvoGirl

It says this account. So I would use only that 1099R. I tested, I entered a 1099R for 2,000 and a 1099R for 8,000. After I enter the 8,000 distribution, if I answered the total RMD of 10,000 (for both) it says I didn't take enough. So I need to enter only the 8,000.

VolvoGirlAnswer

Employee

RMenschel

So in my case, with:

Rollover IRA 1, Required RMD 16,415, taken RMD 11,680

Rollover IRA 2, Required RMD 12,333, taken RMD 17,069

Combined required 28,748, taken RMD 28749 (difference due to rounding)

TurboTax says because IRA 1 taken RMD is less than required RMD, it wants to generate form 5329-T and pay the penalty tax that I do not owe. How do I fix this?

VolvoGirl

Employee

For the RMD questions just enter the amount that’s on that one 1099R box 1 not the total RMD. It’s asking for each 1099R this year.

angelbabygirl

I am having the same issue and I will not lie to the IRS as some have suggested. Has anyone received. RESPONSE FROM TT Yet on timing for TT to correct this glitch.?

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:

Login to your TurboTax Account
Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R” and enter your 1099-R
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)
Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
On the "Review your 1099-R info" screen click "Continue"
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:

Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R” and enter your 1099-R
On the "Required Minimum Distribution" screen enter RMD for this account
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)
On the "Your 1099-R Entries" screen click "Continue"
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

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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.