Question

How will an RMD withdrawal early in 2020 before the waiver was announced and then put the money back in be reported not to have to pay taxes on the initial withdrawal?

Forum|Forum|5 years ago
January 21, 2021
1 reply
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TurboTax Premier Online

Employee

You will report it as a rollover. It actually is a rollover.

Enter the Form 1099-R, then continue through the questions in sequence. When it asks whether the distribution was an RMD, you must answer that none of it was an RMD. You will come to a screen that asks what you did with the money. Select the first choice: "moved the money to another retirement account (or returned it to the same retirement account)."

If no tax was withheld, or if you included the amount of the withheld tax when you returned the money, say that you rolled over all of the money. If you did not replace the withheld tax, that amount will still be shown as a taxable distribution on your tax return.

Continue through the remaining screens until you get to the 1099-R summary. The full amount of the distribution will be included on Form 1040 line 4a. Any amount that you did not redeposit will be included on line 4b. The word "rollover" will appear on line 4b.

I

ihavejeff

This does not help. all of 1099-R was RMD. Some was retained i.e. cash, and some was redeposited i.e. a rollover. How is this properly entered in TurboTax?

D

DanaB27

RMDs were waived for 2020 and you must indicate to TurboTax that none of the distribution was RMD for it calculate correctly in TurboTax. If you have entered your 1099-R as RMD already then you must delete and reenter the 1099-R form. Only editing the 1099-R form and changing your answer to the RMD question will not work.

Please continue until the question "Did you rollover all of this $xxxxx to another retirement account?"
Select "No, you rolled over less than $xxxxx" and enter the amount returned.

You can review Form 1040 to see if it is entered correctly on line 4: