TDA trans'ed to Schwab in 2024.I have 2 1099R's, one from each custodian. I split my RMD betwTDA&Schwab. TT asked required RMD for ea. That overstates RMD. How to enter?

Forum|Forum|1 year ago
February 7, 2025
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(Made up numbers)I took an RMD of $1000 under TDA & $2000 under Schwab. The EOY statements each say I was required to take $3000, which adds up to $6,000. both portions say I under distributed my RMD. What happens when a taxpayer moves from one custodian to a second?

Best answer by VolvoGirl

That can't be correct because then my Distribution would always equal the RMD. I would never exceed or go under. If my RMD was 5K and i wanted to transfer another 5K over to a Roth, your answer would never allow me to do that.

@jjcylk wrote:
That can't be correct because then my Distribution would always equal the RMD. I would never exceed or go under. If my RMD was 5K and i wanted to transfer another 5K over to a Roth, your answer would never allow me to do that.

If you transfer to a ROTH you would need to enter another 1099R for it. If it was included on a 1099R with the RMD you would have to split up the 1099R into 2. And yes in Turbo Tax this year you have to answer that each 1099R was the full RMD and was the distribution on that single 1099R. Turbo Tax changed the questions and everyone is messed up. There are lots of posts complaining, you are not the only one. Most of the forum questions are for the RMD.

SusanY1

If the "real" RMD is $3,000, then use that number. Since each custodian can't know about the existence of any other IRAs that may be subject to RMD, they typically will provide the calculation for the funds in house at whatever time they run and share their calculations.

The actual RMD is based on the adjusted market value as of the prior December 31 of all accounts.

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jjcylkAuthor

Maybe I am not being clear. I started the year as a TDA client. Schwab bought out TDA in 2023 and did not migrate my account until April 10, 2024. TDA issued a 1099R that showed the distributions between 1/1/2024 till 4/10/2024; and Schwab also issued a 1099R that showed the money distributed from 4/10/2024 till 12/31/2024. The required RMD was for 12/31/2024 year end value. Both TDA & Schwab are for the same amount because they are basically the same IRA account but my required distribution should not be double.

SusanY1

Your required distribution isn't double. Are you seeing the double on statements from your brokerage firms or somewhere in the tax return preparation process in TurboTax?

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DanaB27

Yes you can say that the second Form 1099-R had $0 RMD as long as the distribution from the first 1099-R covered all of the RMD for 2024. Otherwise you will need to enter an amount the "Required Minimum Distribution" screen (RMD for this account) to trigger the "How much of This Distribution Applied to your December 31, 2024 RMD" screen.

Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R” and enter your first 1099-R
On the "Required Minimum Distribution" screen enter RMD for this account
On the "How much of This Distribution Applied to your December 31, 2024 RMD" select "The entire distribution applied…" / or select "Some of this distribution…" and enter the RMD amount (if this distribution includes RMD for other IRA accounts then you included the amount here)
On the "Your 1099-R Entries" screen add the second RMD and answer the RMD questions.
On the "Your 1099-R Entries" screen click "Continue"
On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024, otherwise select what is applicable.

You are not required to file Form 5329 if you met all of your RMD for 2024. TurboTax will enter the information in the "Additional Retirement Account Smart Worksheet" to check that you met the RMD but this will not be sent to the IRS.

@smelter 51

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