I understand that these are two separate events but the provision to cause the RMD to be used for the IRA Simple is provided for in the 1099-R, box 7 and the check box. The investment firm (large; won't mentioned name) caused this to happen. Entering again under "Deductions" seems like you would be entering it twice. Having the RMD appear as income when the money was not there for use (it went to the IRA) seems to be penalizing the taxpayer. If the IRS wanted it as two separate transactions why the opportunity to show the transfer on the 1099-R at all? Confusing!
Thanks for answering.
