Turbo-tax RMDs | Ed Slott and Company, LLC

Turbo-tax RMDs

This is one for the Cobbler's Kids. Client has two annuitized IRA Annuities. and turned 70 1/2 in 2007. In the Turbo-Tax interview, it asks if any part of the distributions are RMDs. If one answers yes, the next question is "What part (looking for a number)?" If one answers no, could this trigger an audit? Not sure what the answer should be.

Al, I think the answer would have to be "Yes" and the part would be the full amount distributed, since any distribution taken in the year turning 70.5 is deemed to be credited against the RMD. I imagine TTax wants to be sure that no RMD dollars are rolled over. I do not think the program can gather enough info to determine excess accumulation situations. For example, while the program would know the spouse's age in most cases, use of Table II would also require that the spouse be the sole beneficiary, and I doubt if TTax asks that question. And if they do not identify the IRA as annuitized, they may ask what the prior year balance was when the info does not apply.

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