Where can I see how TurboTax calculates my RMD? It disagrees with Vanguard, produces a "we calculate a penalty of $XXX based on the amount not distributed..." message.

Forum|Forum|1 year ago
April 1, 2025
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Vanguard calculates my RMD every year and distributes the full amount on a schedule, but this year TurboTax calculates that I owe a penalty since it thinks I did not take my full distribution. I can't diagnose the issue because I can't see how or where TT calculates my RMD. Thanks!!

Best answer by emily247

Update: it does seem it's a logic flaw in the online version 😞 I absolutely cannot trigger the question "Did you take the full amount of the RMD?" I'll try the desktop version...

Final update (in case anyone has the same issue): Using TurboTax online. Upon federal review, it triggered a "Check This Entry" flag and asked me to fill in my RMD amount on an "RMD Excess Accumulation Worksheet" (Line A "Required RMD amount"). The *next* line on the worksheet was Line B "Amount distributed in 2024," but that entry was not editable. I did this:

- Filled in the Line A Required RMD amount. Selected Continue

- The next screen asked me to fill in Line C "Did you withdraw the remaining RMD during the correction window?" I selected "Corrected - Yes" (even though I took the full distribution during 2024!)

- This triggered another flag on review, which *did* let me fill in Line B of the same form ("Amount distributed in 2024"), so I filled in the amount of the RMD

- That triggered a final flag on review, where I could check "No entry" on Line C ("Did you withdraw the remaining RMD during the correction window?)

After that, TurboTax seemed content to discard the worksheet, and the issue was resolved.

AmyC

On the 1099-R worksheet. You want to look at all worksheets. Choose to see everything, not just forms.

To print or view your forms:

In desktop, switch to Forms Mode.
For online:
1. On the left side, select Tax Tools
2. Select Print center
3. Select Print, save or preview this year's return
4. If you have not paid, select pay now.

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VolvoGirl

Turbo Tax gets the RMD amount from what you enter. After you enter a 1099R it asks how much was the RMD. Do you have more than 1 1099R? If you get a pension say all of it is the RMD. Anything a pension pays you fulfills the RMD. Go back and check all the 1099R you entered and the follow up questions. There have been a couple major updates in the 1099R section so you may need to change your answers.

fanfare

Due to TurboTax bugs,

to avoid wrongful penalty, for each 1099-R, tell TurboTax that the distributed amount is the calculated required amount.

emily247Author

Hi - thanks! I would *love* to tell TurboTax this, but I cannot find any place to do so. I've worked through all the follow-up questions, and I've deleted and re-entered the 1099-R. There is one screen where it asks whether I've failed to take my RMD from any accounts, and I say "None of these plans failed to withdraw the RMD," and then on the next screen it says I have a penalty "based on the amount not distributed in 2024." I'm utterly baffled.