When a Vanguard advisor handles a distribution to my bank why does Turbo tax not include it in satisfying my RMD?

Forum|Forum|1 year ago
March 2, 2025
1 reply
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Turbo tax did not add my two 1099-R forms, both of which contribute to my RMD. One transaction was done by my advisor.

SabrinaD2

When your advisor facilitates a distribution to your bank, it is still considered a taxable event and must be reported on a 1099-R form. TurboTax may not automatically recognize all RMDs without clear distinction. Please be sure to enter each 1099-R Separately: Make sure to enter each 1099-R form individually in TurboTax.

Here's how to ensure everything is correctly reported:

Sign into TurboTax
Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R” and enter your 1099-R that you used for QCD
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
1. Specify RMD Amount: Enter the RMD amount for each 1099-R when asked.
Next Click on the + to add the next RMD

See original post the original.

pughimagAuthor

Unfortunately this did not work. This time I entered two 1099-INVs with the first one being ALL RMD and the second one being partial. The two RMD amounts added up to my required RMD. Turbo tax only recognized the RMD from the partial amount. Thanks for your response. I think I will need to save a lot of time and submit my return as I usually do - by mail. I have all the numbers and I know what works on paper. The IRS never complains.

So I had hoped that turbo tax would come up with the same numbers but I'm spending too much time trying to manipulate the app to do what I need to do so I think I'll give up at this stage.

Thanks for your responses. It was worth a try.

DanaB27

Please follow these steps in TurboTax Online:

Login to your TurboTax Account
Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R” and enter your 1099-R
Continue until "How much of the $XXXXX was a RMD?" screen and select "Only part of this distribution was a RMD" and enter the amount of RMD /or select "The entire distribution was an RMD" (if this distribution includes RMD for other IRA accounts then you included the amount here)
Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
On the "Review your 1099-R info" screen add the second 1099-R.
After adding all Form 1099-Rs 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.

In TurboTax Desktop:

Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R” and enter your 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 "Some of this distribution…" and enter the RMD amount / or select "The entire distribution applied…" (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 1099-R.
After adding all Form 1099-Rs 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.