2020 Covid changes to RMD and Roth deposit

Forum|Forum|5 years ago
February 19, 2021
1 reply
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Age 74. Took my IRA RMD in Jan of 2020, taking my Fed Taxes from the RMD. After changes to taxes for Covid Relief I re-deposited my full RMD back to my IRA by Aug 31, 2020, the deadline to do so. Per the changes allowed in the law for 2020 only, I then created a Roth account and deposited the full amount of my RMD into my new Roth. Turbo Tax does not seem to be able to handle this and at a minimum want to charge an excessive Roth contribution charge. How to I handle this whole event with TT? THX

D

dmertz

Employee

This is a Roth conversion, not a regular Roth IRA contribution. nothing regarding this is to be entered under Deductions & Credits. Got back to Deductions & Credits -> Retirement and Investments -> Traditional and Roth IRA Contributions and remove the entry that you made there.

The amount in box 1 of the code 7 Form 1099-R that you received should show the sum of the amount distributed and rolled over and the amount distributed and converted to Roth. Enter this Form 1099-R exactly as received under Wages & Income (or Personal Income) -> Retirement Plans and Social Security -> IRA, 401(k), Pension Plan Withdrawals (1099-R), indicate that you moved the money to another retirement account or returned it to the same account, indicate that you did a combination of rolling over, converting or cashing out, then indicate that amount rolled over and the amount converted to Roth. TurboTax will include the enter amount on Form 1040 line 4a but will include in the amount on line 4b only the taxable amount of the Roth conversion. TurboTax will also include the word ROLLOVER next to this line.