RMD must be rounded down ?
My first RMD was in 2024 and had an issue with TurboTax.. I put in my RMD as (let’s say) 12,345.39 and TurboTax drops the .39 and then has a fit because 12,345 is less than 12,345.39. Consequently, after discussing with TT rep, I pretend my RMD is 12,345 (without cents) and the problem goes away. This feels wrong but I think there’s a lot of rounding in IRS documents as well. Should I be pursuing a different solution ?
Permalink Submitted by Alan - IRA critic on Fri, 2025-02-28 09:58
No problem here. The rounding is fine, and your actual RMD should be rounded to the nearest dollar. The IRS will never question your reporting 12,345. This is entirely within the IRS rounding rules. Actually, you should enter properly rounded figures for all figures that you enter into TT, although if you don’t TT will round them for you.
And even if the IRS was curious, they got a copy of the 1099R which indicates the actual amount you distributed.
Permalink Submitted by RonC on Fri, 2025-02-28 10:29
Thank you Alan. I appreciate your help.