Question

IRA RMD Rollback Per CARES Act

Forum|Forum|5 years ago
March 12, 2021
1 reply
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I received an IRA RMD in 2020 but to take advantage of the CARES Act provision requiring no RMDs in 2020, I rolled the distribution back into the IRA within 60 days. I have entered the 1099R for the distribution in Turbotax. How/where do I enter the rollback offsetting the RMD?

D

DanaB27

Please follow these steps to enter your 1099-R and RMD rollover:

Open your return
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 was a RMD?" and select "none"
Continue "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
Continue answering the questions.

RMDs were waived for 2020. You must indicate to TurboTax that none of the distribution was RMD. If you already enter the 1099-R as RMD and changing your answer to the RMD question doesn't work then you have to delete and renter the 1099-R form.

You can verify your entry by looking at your Form 1040 line 4.

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7

73mb

That was helpful. I added a problem to my IRA taxes for 2020 by rollover of entire amount and then when the stock market plunged in the fall, I put the entire amount back in.

Now my withdrawal as double the RMD amount.

Can you offer additional advice for this issue?

D

DanaB27

To clarify, you got your RMD and you invested somewhere else and then decided to return the RMD but had less money to return because you lost money in the investment?

If you returned less money than the distribution then the rest is considered to be cashed out. You will only enter the amount you actually put back into the retirement account as a rollover.

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