TIAA Traditional withdrawal via Transfer Payout Annuity which includes RMD. Turbotax asking for an account type in the RMD section. What is the answer?

Forum|Forum|1 year ago
February 23, 2025
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in the RMD Excess Accumulation Worksheet TT is asking for the account type: IRA, 403(b), or "other". The TPA is a form of IRA but TT won't accept that answer.

DanaB27

To clarify, did you not take all of your RMD for 2024?

If you took all of your RMD for 2024 then select "None of these plans failed to withdraw the RMD" on the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen.

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esr38Author

The response did not address the question. We have two retirement accounts, a Rollover IRA and the TIAA "IRA" withdrawn as an annuity. For both of them, the withdrawal is more than the RMD so the 1099 info is entered as the RMD being only a part of the withdrawal. The amount of RMD needed and done are entered. TT then has this "RMD Excess Accumulation Worksheet" which requires a box to be checked with the type of account either IRA, 40e(5), or "other". Not sure why that is needed since RMD for both accounts have been entered. My question was which box to check. I finally just checked "other" to make it go away.

esr38Author

Looking again at this issue, I see that the problem is understanding the question TT is asking. The question in the step-by-step sequence is whether the entire distribution applies to the RMD or just some of it. To me the "distribution" is the amount in line 1 of the 1099-R Since the amount in line 1 is more than the RMD, If I check "some of it" we get into the mess showing in the form. In the form, the RMD section shows that "no" has been checked to the question whether the "entire gross" applies to the RMD. TT then puts that RMD amount into line B of the "RMD Excess Accumulation Worksheet" which is "amount distributed in 2024". To me the "amount distributed" in that worksheet should be the gross amount in line 1 of the 1099 R but that only happens if I change it to check "yes" to the question of entire gross; then the amount in line B of the worksheet accurately reflects the amount distributed from line 1. I now recognize that the original question about what "account type" to check is only relevant if TT thinks it needs to determine if the entire RMD was not paid.