@SanDieggo wrote:
I see several "work arounds" involving altering entries on 1099's. Won't that trigger a response from the IRS in that their copy of your 1099-R does not align with what you coded on the TT version of the 1099-R? But we should not have to play games with figuring this out. TT dropped the ball majorly on this one. Perhaps too many H1B "geniuses" in the mix back at coding central. TT needs to come up with an update that handles this cleanly This is FUBAR
It is not 'playing games" and there is nothing to "figure out", simply answer the question truthfully that "none of this distribution was a RMD" which is was not.
Nothing about the RMD answer goes on your tax return at all, the question is simply to determine if the rollover is allowed (RMD's are not allowed to be rolled over), but a return of a 2020 IRA distribution as a rollover is allowed because it was not a RMD in the first place.
It is handled cleanly when the RMD question is answered correctly.
(Some have asked and suggested that the RMD question be removed altogether, but there are some 1099-R's for certain pensions and distributions from defined benefit plans that did require a 2020 RMD and that RMD was not changed by the CARES Act. so the question and RMD is still required for some.)
**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.**
