Can I determine why Turbo Tax thinks I did not take out my RMD?

Forum|Forum|1 year ago
January 13, 2025
4 replies
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RMD = $xx,000 Withdrawal = $xx,000

Best answer by dmertz

If you completed all of your RMDs, when TurboTax asks during the entry of a particular Form 1099-R how much RMD you were required to take (from this account), enter no more than the gross distribution amount (box 1) from the corresponding account. The portion of the RMD for this IRA or 403(b) completed with a distribution from a different account must be included with the RMD for the different account when asked the same question during the entry of the Form 1099-R for that different account.

dmertzAnswer

Employee

gmalcolm51

I did just that, however Turbo Tax is calculating a tax of 25% of the two combined account RMDs required. I turned 73 this year and withdrew all required from my two accounts.

thanks,

Greg

DianeW777

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GLD777

I just had my 4th telecon with TT support on this. This time they read me the official INTUIT policy guidance on this issue, and it clearly states that RMDs for multiple accounts must be taken from each account rather than satisfied in total. It turns out they are half right: this is indeed the requirement for 401k and 457 b accounts, but it is NOT true for IRA and 403b account. Currently the TT2024 software does not differentiate between these account types. The agent finally realized that there are two different cases and understands that their software in incorrectly processing the IRA/403b accounts, and she agreed to escalate the problem. I can't believe there aren't many other reports on this, but hopefully they will get it fixed before the filing deadline.

dmertz

Employee

This is by far the issue that I mentioned the most by people on this forum this year. It's always possible to get TurboTax to produce an appropriate result on your tax return by manipulating the RMD amounts entered, but TurboTax makes it more difficult rather than making it easier. It's the result of the developers adding the the changes to Form 5329 required by the tax-code changes in the SECURE 2.0 Act without the developers having any real understanding of the RMD regulations.

agosta

Employee

I cannot get TurboTax to recognize I have taken all of 2024 RMD. I have entered and reentered the correct information with no effect. What can I do?

Taxpro2025

Beware: With traditional IRAs, you can add up the balances in all your traditional IRAs, divide the total by the life expectancy factor, and take the money from one or more accounts. However, with 401(k)s and 403(b)s, you must calculate and withdraw the required amount separately from each account.