I have 2 1099R; same company separate accts. While entering one, TT asks for RMD. If I enter 2024 RMD, TT adds penalty tax. Should I enter RMD for 1099R I'm entering?

Forum|Forum|1 year ago
January 31, 2025
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Since each 1099R only lists partial RMD withdrawals that add up to 2024 RMD, should I enter the RMD for each account? If I enter the total 2024 RMD while entering each 1099R, then TT calculates penalty tax.

agoodrich23Author

Hello, since this was my first post, I don't know if it's normal to not have received any comments yet. If there are any moderators, then could you please let me know if I just need to be patient or if I need to clarify my post.

Thank you,

DaveF1006

It depends. In order to accurately report your RMD information, you must know the total amount of your RMD requirement for the year. You may aggregate the total amount on one form. Report your total RMD requirement on that form. Do this on your first 1099 R entry.

Now when you enter your second form 1099 R, mention that none of this was an RMD and complete the form. After you complete both forms, there will be follow-up screens. You will see a screen that asks if you met your total RMD requirement for all your retirement accounts. Here you will say yes.

Be sure when you enter the RMD amount for the first form, you indicate that this was the required minimum distribution for the year so that it doesn't trigger the penalty tax for the year. Here is the screen I mentioned previously.

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agoodrich23Author

Hi Dave, I do have the RMD requirement, but your suggestion does not work as expected.

On the first form,

I enter an amount from one 1099, which is less than the total RMD

Next screen, I select that all of that amount was an RMD

Next screen, I enter the total RMD amount

Next screen asks if I "took out the entire remaining amount during the correction window." I entered yes.

Next screen, none to charity

This form is complete, and I move onto the next one

I enter "No, none of this withdrawal is an RMD

Next screen, none to charity

Next screen, I cashed it out (did not move to another IRA or return it to the same IRA)

Next screen, no I didn't put it towards an HSA

Next screen, not a 2023-24 disaster distribution

2nd form is completed. Several hundred dollars in tax due is displayed.

Next screen, no disaster distribution between 2021-23

Next screen, did not make/track nondeductible contributions to IRA

Next screen, "Let's check if met minimum distribution requirement." Total RMD displayed is twice what I entered, so I select "No" I then get the following message:

"We recommend waiting to file your taxes.

We're working on some updates related to required minimum distribution, but your can still work on other parts. . . .Please check back here later on."

Would you be able to let me know if what I describe above is correct and the SW needs update or if I didn't exactly follow your instructions?