Question

RMDs paid during 457k rollover but reinvested

Forum|Forum|5 years ago
May 3, 2021
1 reply
0 views

Hello,

I rolled over a traditional 401k and 457k to a traditional IRA in 2020. They automatically paid out the RMDs for each and rolled over the remaining amount to the IRA. State and Federal taxes were taken from both distributions. Because RMDs were not required in 2020, I sent the IRA company the gross amount (pre tax) of the distribution, so the entire amount would be rolled over. I was told this was OK if the amount sent was the exact gross amount of the distribution.

So my questions is, how do I enter this into Turbo Tax for 2020 returns? Do I need a 1099R for the 401 and 457 even though the RMD was never actually distributed. How do I enter the rollover? How do I get credit on the return for the taxes paid. Thanks for any help.

macuser_22

Employee

@joeyhatch7 wrote:

So my questions is, how do I enter this into Turbo Tax for 2020 returns? Do I need a 1099R for the 401 and 457 even though the RMD was never actually distributed. How do I enter the rollover? How do I get credit on the return for the taxes paid. Thanks for any help.

You should have already received 1099-R's for the distributions.

Any box 4 tax withholding will go on the 1040 and will offset your overall tax liability or add to your refund.

Delete the 1099-R you entered and re-enter.

Answer the RMD question that "None of this distribution was a RMD" or "RMD not required" depending on the TurboTax version - because it was NOT a RMD, there were no 2020 RMD's.

Then you will get the screen to say it was "moved" and all rolled over.

Also check the box that this was NOT a COVID related distributions - it was a RMD that was returned.

That will put the 1099-R box 1 amount on the 1040 form line 4a with the word ROLLOVER next to it.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**