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RMD Issue

Forum|Forum|5 years ago
February 24, 2021
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I took $5,000 in RMDs in 2020 and then decided to put back $2,000 into the same IRA account. The Form 1099 shows the gross amount (the $5,000) taken out; not the net amount of $3,000. When I import the Form 1099 it shows the full $5,000 as taxable. I spoke with the back office of Merrill Lynch and they said this is the way they have to report it. Does anyone know how to record the rollback (the $2,000) in Turbo Tax so that Turbo Tax will then reduce the taxable amount?

Best answer by MinhT1

Your repayment is considered as a rollover to the same account and is not taxable.

This is how you would enter your form 1099-R and the repayment in TurboTax:

In TurboTax, open your tax return
Click on Federal in the left-hand column, then on Wages & Income on top of the screen
Scroll down to All Income, locate the section Retirement Plans and Social Security and click on Show more
Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).

After entering your form 1099-R, click Continue until you reach the screen Tell us if you moved the money through a rollover or conversion. Check the radio button which corresponds to your situation then click Continue and follow the interview. Enter the amount you repaid and it would be excluded from taxation.

M

MinhT1Answer

Your repayment is considered as a rollover to the same account and is not taxable.

This is how you would enter your form 1099-R and the repayment in TurboTax:

In TurboTax, open your tax return
Click on Federal in the left-hand column, then on Wages & Income on top of the screen
Scroll down to All Income, locate the section Retirement Plans and Social Security and click on Show more
Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).

After entering your form 1099-R, click Continue until you reach the screen Tell us if you moved the money through a rollover or conversion. Check the radio button which corresponds to your situation then click Continue and follow the interview. Enter the amount you repaid and it would be excluded from taxation.

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