dmertz
Level 15

Retirement tax questions

The only aspect of this that may be considered to be a workaround is the need to delete and reenter the Form 1099-R if the question was originally answered as indicating that the distribution was an RMD.

 

Saying that the distribution was not an RMD is the correct and proper response, not a workaround.  Because RMDs were waived for 2020, even though the distribution was originally intended to be a RMD, it was not an RMD in the legal sense.  Saying that the distribution was an RMD is therefore a technically incorrect response except for cases where the distribution was to make up a missed RMD that was required to have been taken by the end of 2019 or earlier.  If the distribution was a make-up distribution for an RMD that was required to have been completed by the end of 2019, the distribution was not eligible for rollover.

 

Nowhere does a Form 1099-R say that the distribution(s) being reported on it are RMDs and nowhere does your tax return identify any distribution as being an RMD, so saying that the distribution was not an RMD cannot possibly result in any matching error at the IRS.