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March 10, 2021
Question

Should I note the 8,000 RMD for 2020 or not write it in at all?

  • March 10, 2021
  • 1 reply
  • 0 views
How to do RMD?

1 reply

DawnC
Employee
March 10, 2021

It depends.  If you did not take the RMD, you won't receive a 1099-R and you don't have to enter anything about it.  However, if you did take it and either kept it or returned it to the account, you will get a 1099-R and it does have to be entered, even if you returned it making it a nontaxable event.   To enter your 1099-R, follow the steps below.   When entering the 1099-R, do not indicate it was an RMD though.   Since RMDs were waived for 2020, the distribution is not technically a required minimum distribution.  

 

  • Open (continue) return if you don't already have it open.
  • Inside TurboTax, search for 1099-R and select the Jump to link in the search results.
  • Answer Yes on the Did you get a 1099-R? screen.
    • If you land on the Your 1099-R Entries screen instead, select Add Another 1099-R.
  • Select which option matches your form and Continue.
  • You can import your form directly from your financial institution by searching or selecting yours from one of the options on the screen. You'll be prompted to enter your financial institution account information, and TurboTax will directly import your forms.
    • If you prefer to type it in yourself, select Change how I enter my form and continue through.

You can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a coronavirus-related distribution, and apply the tax relief of waiving the 10% penalty and spreading the tax ratably over 3 years (2020-2022).

 

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