Is RMD from inherited IRA excluded from AGI?

Forum|Forum|1 year ago
February 20, 2025
1 reply
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Hello,

Working on 2024 taxes now. Spouse passed away in Feb 2024. After this, I took the full RMD he was supposed to for 2024 and then rolled his IRA into mine.

Now, when going through Turbo Tax, they seem to be excluding this RMD from the AGI for 2024 (I indicated that it was my RMD as that is what it says on the 1099-R form I received and also answered the questions confirming this IRA was inherited and now rolled into my separate RMD).

Is this right? Looks like good news as I will receive a refund if that RMD is excluded from AGI but just wanted to be sure before finishing up. ..

Thanks!

dmertz

Employee

When you enter a distribution from an inherited IRA, you yourself are required to enter the taxable amount of the distribution. With that entered, I think you will see that amount included in your AGI.

bbsocksAuthor

Thanks for the fast reply!

I do have the RMD total reflected in both fields 1 (gross distribution) and 2a (taxable amount) from the 1099R.

And I see that that included in the "IRA, 401(k), Pension Plan Withdrawals (1099-R)" row on the "Wages & Income" tab.

However, this RMD is dropped from AGI when I get deeper into the program.

When I review the details on Form 1099-R Summary, I see this total in field 1b which is called "Less: Inherited and treat as own". And then it is excluded from field 10 which is "Taxable amount included on Form 1040, line 4b"

This leads me to believe that this either (a) this is not taxed or (b) there is a bug in turbotax. . .

dmertz

Employee

"I see this total in field 1b which is called "Less: Inherited and treat as own"."

This implies that you are the spouse of the decedent and that you indicated that you moved the IRA to your own account, implying that you rolled over this distribution, making it nontaxable. TurboTax's selections as the answers to the question about what you did as spouse are quite misleading. They are asking in regard to the particular distribution, not the IRA as a whole.