RMD for multiple TIRA accts with rmd withdrawn from one TIRA account

Forum|Forum|1 year ago
February 24, 2025
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Tonite my TTax updated and added a bunch of RMD questions to my finished but not yet filed '24 return. In the past it was acceptable to make an rmd from a single account that covered all TIRA accounts. To clarify, rmd of $1k from acct A and rmd of $1k from acct B. Pay rmd of $2k from acct B, the rmd has been met. No $$ take from acct A. Now I see in the RMD page a note: "do not include rmd for other accts you may have. They should be entered separately".

So I did not take an RMD from Acct A because I took it from Acct B and entire RMD was satisfied. I am now confused. Did the law change or has TTax simply added verbage that has confused me?

ALSO:

There is a new page added to TTax. " Did I Miss a RMD?" "If an acct did not have a distribution blah, blah"

That goes back to the top of this query. An rmd was required from an acct but that rmd was taken from a different TIRA account, combining the totals from both account into one RMD from one acct. 5 yrs ago when I first did this I read the IRS reg that this approach was acceptable. I hope it has not changed since then.

Pls clarify my confusion.

Best answer by DanaB27

Yes, you can take your RMD for all IRAs from just one IRA. Please see Can an account owner just take a RMD from one account for additional information.

Please follow these instructions for 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 that was applied towards the RMD (from all IRAs)
After entering all Form 1099-Rs click "Continue"
On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "An IRA..."
On the "Total RMD for all other IRAs" screen enter the RMD from your other IRAs (where you didn't take a distribution from).

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 (from all IRAs)
Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
After entering all Form 1099-Rs click "Continue"
On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "An IRA..."
On the "Total RMD for all other IRAs" screen enter the RMD from your other IRAs (where you didn't take a distribution from).

You won't have a entry on Form 5329 since you met all your RMDs but you can see it on the TurboTax worksheet. Look for the Smart Worksheets From 2024 Federal Tax Return and then scroll down to "Form 5329: Additional Tax on Retirement Distributions (Taxpayer) -- Smart Worksheet".

Example of $8,000 RMD distribution from an IRA with $3,000 RMD and another IRA with $5,000 RMD (nothing withdrawn from this account):

DanaB27Answer

Yes, you can take your RMD for all IRAs from just one IRA. Please see Can an account owner just take a RMD from one account for additional information.

Please follow these instructions for 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 that was applied towards the RMD (from all IRAs)
After entering all Form 1099-Rs click "Continue"
On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "An IRA..."
On the "Total RMD for all other IRAs" screen enter the RMD from your other IRAs (where you didn't take a distribution from).

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 (from all IRAs)
Enter the RMD amount for this account on the "Let's get more information about your Required Minimum Distribution (RMD)" screen
After entering all Form 1099-Rs click "Continue"
On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "An IRA..."
On the "Total RMD for all other IRAs" screen enter the RMD from your other IRAs (where you didn't take a distribution from).

Example of $8,000 RMD distribution from an IRA with $3,000 RMD and another IRA with $5,000 RMD (nothing withdrawn from this account):

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Username5Author

Thank you. This worked for the Taxpayer account but NOT for the Spouse account. There is no 5329-S

Concerning your step #5: "After entering all Form 1099-Rs click "Continue""

There is no 1099-R from one TIRA Payer since no withdrawal was made from that account. The rmd for that account was taken from a different TIRA Payer.

When I look at "Forms" there is a 5329-T for my multiple TIRA's but there is no 5329-S. In the Topic List I can find and open that form. The SmartWorksheet appears to be correct for both of us and there are no errors.

I also failed to mention that both of us took excess rmd, entered on "some of this..." page of rmd and paid the tax and transferred that amount to Roth's. Those numbers on the Additional Distribution section of the 1099-R (B4 & B6) appear correct.

DanaB27

To clarify, your spouse took all of her RMD for 2024? If yes, then she doesn't need to file Form 5329. The Smart Worksheet is only for your record, it doesn't get sent to the IRS.

Yes, if you any funds above the RMD can be converted to Roth.

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
On the “What Did You Do With The Money” and choose “I moved it to another retirement account”
Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the converted amount next to "Amount converted to a Roth IRA account" (keep in mind RMDs cannot be converted to Roth IRAs).

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jeffhecht

This almost worked, but I have found another problem when filling out the Total RMD for all other IRAs. I have a small IRA held as a CD in a local bank for which I need to make an RMD, which I will call IRA-RMD. Because it's held as a CD, I add the "IRA-RMD" to the money distributed through my much larger SEP-IRA at an investment company (SEP-IRA-RMD). Some distribution goes to charities, the rest goes to us. I entered the SEP-IRA-RMD numbers when filling in the 1099-R from the investment company. I received no distribution from the bank to cover the IRA RMD, so I entered the amount due in the Total RMD for all other IRAs, and when I moved on to the next entry (WAS A CORRECTIVE DISTRIBUTION MADE FOR YOUR IRA ACCOUNTS), TurboTax told me my RMD was short BY THE EXACT AMOUNT I entered for the IRA-RMD. That looked suspicious to me, so I tried entering the digits 333 and TurboTax told me my RMD was short by exactly 333. So it looks to me like TurboTax is adding rather than subtracting or the other way around for the Total RMD for all other IRAs. Please check this and fix it. Thanks

DanaB27

Please make sure you include the RMD from the account you didn't withdraw when TurboTax asks "How much of the $XXXXX was a RMD?" (step 4 in TurboTax Online) or "How much of This Distribution Applied to your December 31, 2024 RMD" (step 4 in TurboTax Desktop). You would enter here the RMD from SEP-IRA + RMD from the CD IRA.

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 click "Continue"
On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "An IRA..."
On the "Total RMD for all other IRAs" screen enter the RMD from your other IRAs (where you didn't take a distribution from).

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 click "Continue"
On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "An IRA..."
On the "Total RMD for all other IRAs" screen enter the RMD from your other IRAs (where you didn't take a distribution from).