AN IRA was distributed to my mother, code D4. I entered the whole distribution as RMD but now I'm getting a penalty for the 'amount not distributed'. How do I fix this?
AN IRA was distributed to my mother, code D4. I entered the whole distribution as RMD but now I'm getting a penalty for the 'amount not distributed'. How do I fix this?
Codes D and 4 together indicate that the distribution was from a nonqualified annuity, not from an IRA. A Form 1099-R is not permitted to have the IRA/SEP/SIMPLE box marked when code D is present and code D can never be used for any distribution from an IRA.
Nonqualified annuities are not subject to RMDs, so TurboTax should not be asking about RMDs with respect to this distribution.