First year of inherited IRA/retirement pension from my dadwhen I was discussing the distribution with Fidelity. They said that I had to take the RMD for 20

Forum|Forum|1 year ago
March 6, 2025
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My dad passed away in January 2024.
I received a distribution from his pension with Fidelity, and it was rolled over into a new inherited IRA I now have with Edward Jones. When I was discussing the distribution with Fidelity., they said that I had to take the RMD for 2024. So now I have two separate 1099R forms from Fidelity. One is for the distribution that was rolled over, and one is for the RMD. The problem is that TurboTax is asking me if I took the RMD and how much on both.🙄 Why would I need to take an RMD on an RMD?

TurboTax PLUS Online

dmertz

Employee

When entering the Form 1099-R that has code 4, indicate that it is all RMD and the entire RMD required.

When entering the Form 1099-R that has code 4 and G, TurboTax should not be asking anything about RMDs,. Despite that, TurboTax needlessly asks how much RMD is required with respect to this distribution and you must enter zero.

dcl766 Author

Thanks for the reply.

I don’t see a spot anywhere on the 1099 (or that baffling screen that TT has apparently just recently added and which I pasted below) where it indicates and/or I can indicate that it is all RMD and the RMD amount.

I do see on the 1099R forms that Fidelity is treating them as two separate accounts, and they have two separate numbers that are numbered sequentially. I’m not sure if this affects anything.

None of the numbers I am expecting seem to make sense unless I enter a “zero” on this screen for both 1099’s:

Let's get more information about your Required Minimum Distribution (RMD).

Live tax advice

We still need some required info.

If your FIDELITY INVESTMENTS INSTITUTIONAL OPERATIONS CO. account was subject to a Required Minimum Distribution (RMD), we need to know the amount that was required to be distributed by December 31, 2024 from this FIDELITY INVESTMENTS INSTITUTIONAL

OPERATIONS CO. account.

Do not include RMDs which are due on April 1. RMDs for the first year you're required to take a distribution are generally due on April 1.

RMD due by Dec. 31, 2024

Needs info

Note: Do not include the RMD for other retirement accounts you may have. RMDs for other accounts should be entered separately.

KrisD15

The 1099-R for the RMD of your father should have code 4 in box 7.

Enter the 1099-R

Select "This personal was born before January 1, 1952"

Enter the amount of the distribution in the RMD due by Dec 31, 2024 box on the "Required Minimum Distribution (RMD)" screen

Select "The entire distribution applied to the December 31, 2014 RMD"

Select NO for "Any Periodic Payment?"

continue through the interview

This completes the entry for your father's RMD

Next enter the second 1099-R

Continue to the "What Did You Do With The Money?" screen and select "I rolled over all of this money"

Continue through the interview.

The RMD will be taxable and the rollover will not

@dcl766

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dmertz

Employee

"Continue to the "What Dis You Do With The Money?" screen and select "I rolled over all of this money""

This question will not appear because an inherited pension can only be moved by direct rollover, indicated by code G along with the code 4. (If the Form 1099-R for the portion moved to the IRA has only code 4, it's reporting a distribution that was not permitted to be put into an inherited IRA and TurboTax will again not ask what was done with the money.)