RMD withdrawel issue

Forum|Forum|1 year ago
February 9, 2025
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I have 2 RMDs from 2 1099-Rs. I'm entering the separate RMD amounts for each 1099-R. I took $360 from the account that had an RMD of $2,500, and took $5,200 from the account that had an RMD of $3,000 but Turbotax is telling me I have to pay taxes and penalty.

TurboTax Home & Biz Windows

MinhT1

An IRA owner must calculate the RMD separately for each IRA that he or she owns, but can withdraw the total amount from one or more of the IRAs.

If you are sure that you have satisfied all RMD requirements, then in TurboTax, on each form 1099-R for RMD withdrawals, answer that The entire distribution was an RMD then on the following page, to the question What is the RMD for your account? enter the amount of the distribution from that IRA account.

By doing this, you are telling TurboTax that all RMDs are satisfied and TurboTax will not calculate any penalty. The information you entered in TurboTax is to enable TurboTax to calculate any penalty where applicable, and is not reported to the IRS.

Similarly, a 403(b) contract owner must calculate the RMD separately for each 403(b) contract that he or she owns, but can take the total amount from one or more of the 403(b) contracts.

However, RMDs required from other types of retirement plans, such as 401(k) and 457(b) plans have to be taken separately from each of those plan accounts.

Please read this IRS FAQ for more information.

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dshaferAuthor

You keep repeating the same thing, but it DOES NOT WORK.

rivers404

I am having the same issue. One person told me to make sure I click "entire distribution is an RMD" on each 1099 entry which I did but still have the problem. There is an error in Turbo Tax