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January 31, 2021
Question

RMD distribution

  • January 31, 2021
  • 1 reply
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Took taxable RMD dist in 2020 and did not return it--thus taxable.  Checked box for "YES" where requested re taxability.  TT continues to erase "YES" box and will not move to "Taxable Amount" on 1040.  ???

    1 reply

    January 31, 2021

    Interesting.  Lets start with basic stuff.  You need to be over 70 1/2 for the RMD rules to apply.  Next, lets take a look at your return.  To view only your 1040 form: In the left margin Select Tax Tools then Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu.  You will be able to see your 1040 and particularly lines 4b and 5b for your taxable retirement distributions.   Click Back to go back to your TurboTax input screens.  

     

    Next let walk through the input.  In the 1099R input, Box 1 and box 2a should have amounts entered.  There also should be a 7 in box 7.  Next on the Uncommon situations should be None. Next screen indicate all distribution is RMD.  Next screen, indicate did not rollover or convert.  That should take you back to the summary then continue.  Next are the questions on nondeductible contributions to IRA.  This should be No.

     

    After going through the screens go back to review a summary of the 1040 through the Tax Tools to see if your distributions are taxable on line 4b or 5a.

     

    Here is a link on previewing your 1040

     

     

    danshan1Author
    February 3, 2021

    Thanks for the reply.  It appears that TT does NOT update taxable portion of IRA distributions on 1040 until Form 8606 is completed, which is much later in the process.  That was my issue, not the 1099R data entry.

    February 3, 2021

    Great! Glad to here you resolved it after the 8606 questions in TurboTax.