Inherited IRA - taxed on full amount, not RMD

Forum|Forum|1 year ago
February 26, 2025
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I entered the 1099-R information for an inherited IRA. We took the RMD for the year. Turbo Tax is taxing the full amount of the distribution, not the RMD. The override feature will not work on line 4b. Please advise how to correct.

KrisD15

Distributions from an IRA account are taxable in the year the distributions are made unless the funds are rolled over to another tax-deferred account.

When you inherited the IRA, did you open an "Inherited IRA" (or "Beneficiary IRA) ? Is the distribution you are referring to (from a Beneficiary IRA account)?

If not, and you took a total distribution, that distribution will be taxed.

When a RMD is not made, there could be penalty tax on the missed RMD, but the taxable portion of a distribution from a traditional IRA is not only the RMD, it's the entire amount.

Link about inherited IRA

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