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March 7, 2025
Question

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?

  • March 7, 2025
  • 1 reply
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The distribution was from my father who died

    1 reply

    Employee
    March 7, 2025

    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.