Entering a 1099 R correctly

Forum|Forum|3 years ago
February 26, 2023
2 replies
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I had a RMD for an account. My financial advisor withdrew the amount, paid federal taxes and then reinvested it for me. When I enter this information in Turbo Tax what I end up with is trying to explain why I don't need to pay 50% tax on it. How do I complete this correctly?

Bsch4477

Employee

Be sure that when you entered your 1099-R that you said all of your distribution was for RMD.

whiteribbonsg

nice

GeorgeM777

If your RMD was the correct amount, and all of it was taken for 2022, then you should not be subject to the 50% additional tax. On the screen, About This Retirement Account, did you select Yes, some or all of this withdrawal was an RMD.? Did you also select on the same screen the option for All of this distribution was an RMD. ? If yes, then the 50% additional tax should not apply.

You mentioned that your financial adviser withdrew the IRA funds, paid the tax, and then reinvested the money. As long as the reinvested funds did not go back into another tax deferred account, you should not be subject to any additional penalties associated with the reinvested funds.

@beedeemac

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