Turbo Tax RMD Error
I’m wondering if you have been getting questions about TURBOTAX’s treatment of RMDs. It has always been that if one has multiple Traditional IRA accounts then withdrawing all the RMD (the total of all RMDs from the individual accounts) from just one account was acceptable. TurboTax is assessing a penalty tax if just one account withdraws less than that account’s RMD. Since not all Traditional IRA accounts would be known to TurboTax (ie, where there was no withdrawal and therefore no 1099-R) they could not know the total of the RMDs nor if the total withdrawn satisfies that total RMD. Has the IRS changed the RMD rules? Or has TurboTax tried to get too cute! Thanks.
Terry Says
I’ll check with TurboTax — but TT doesn’t “assess” penalties! So I’m not quite sure what you’re talking about. It might offer a reminder about taking RMDs. And you’re correct that it is up to you to total all your retirement accounts and take out the appropriate amount — which can come from one account or several.
You’ll receive an email saying “your question has been answered.” If you want to reply to that with more details of your situation, I’ll wait to present it to TT.
