Entry of any RMD Amount Due is charging a 25% penalty

Forum|Forum|1 year ago
February 27, 2025
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I have multiple retirement accounts comprised of pensions and 2 IRAs, one inherited and one mine. I have taken out more than the owed RMD amount from each IRA individually so it is unlike the problems being reported where it is not adding up the amounts withdrawn from multiple IRAs. In my case, it is handling this wrong on 2 separate IRAs when I have withdrawn from both more than was required for that specific RMD. In both IRAs, when I get to the screen asking for the RMD due Dec. 31, whatever value I enter, it immediately penalizes me and adds 25% of that to my tax owed, even though I have withdrawn more than that amount. For example, if I enter $100 into the RMD due field, it bumps up my taxes owed by $25. This happens for both IRAs.

I know I don't owe a penalty. If I enter 0 in the RMD due Dec. 31 field, it does not access a penalty which it shouldn't, but then the value in that field is wrong. I can do that but was hoping others might have run into this problem and have a better solution for me.

Thanks!

Best answer by tvromero

Thank you. I took the update. Then I deleted both my inherited and my own 1099-R and then manually added them. It is behaving like it did before. It adds a penalty when I put in anything besides 0 in the RMD due field. Also, it never asks me the questions you said it should. It still asks me the same questions as I documented above.

I got it solved. When you enter the amount into the required RMD box, it will change the tax due. In the very next screen it will ask "How Much of This Distribution Applied to You December 31, 2024 RMD?" Answer that as "The entire....." and the tax due will reduce.

IMO, turbotax should not increase the tax due UNTIL this final question is asked since it creates confusion when the tax due increases, just to decrease in the next screen.

janicelehmanAuthor

Hello. I haven't gotten any replies to this so I thought I'd send something and hope someone might see it this time and respond. Thanks!

DawnC

That issue is still being worked on - you can sign up for notifications from the link below. These two RMD issues are still being addressed. The first may apply to your IRA and the second one may apply to the inherited IRA.

Why am I getting an RMD distribution amount error?

Why am I getting an error when entering Form 1099-R box 7 code 7D?

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janicelehmanAuthor

Thank you. Neither of these are the situation I am asking about. I don't receive any error messages. It just automatically adds a penalty to my taxes owed as soon as I hit enter after entering my RMD Due amount. Will this fix be included in the other RMD fixes? Thanks!