Turbo Tax RMD Calculation is incorrect

Forum|Forum|1 year ago
February 11, 2025
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We have two IRA accounts, from two different brokerages, and have taken the required RMD entirely out of one of the accounts to cover the combined market value of the IRA's in both of the accounts. We have entered the amount of the RMD correctly, but a later Turbo Tax page says that our entries result in a larger RMD being required (almost twice as much as it should be). This calculation is incorrect/too large, and we don't know how to change it. What can we do?

DavidD66

You need to clear the RMD information you have already entered in TurboTax. To do so, you will have to delete your Forms 1099-R. After you delete the forms re-enter them. When you are asked "How much of the [distribution amount] was an RMD?" Mark the button to indicate that "The entire distribution was an RMD". On the screen with "Let's get more information about your Required Minimum Distribution (RMD)." the program asks "Could you tell us what the required minimum distribution for your account was in 2024?" Enter the same amount that was in box 1 of your 1099-R. Do this for each of your Form 1099-R.

After you have entered all your Forms 1099-R, on the screen with ""Let's check if you met the minimum distribution requirement" the program will ask "Did you take the required minimum distribution (RMD) for 2024 for ALL of your retirement accounts that have this requirement?". Answer Yes, assuming that you have met your combined RMD requirements.

The RMD information that shows may be more than your actual combined RMD amount for the year. That's OK. The information is not included with your tax return and is not reported to the IRS.

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