Retirement tax questions


@bobio02 wrote:

I have the same problem.  I've imported my RMD info from Vanguard.  When I go through the steps in Turbotax it asks if I have rolled over/back any of the distributions.  I answered yes, for I rolled all of them back into the original IRA accounts.  Turbotax then, in parentheses, states that I will not have to pay tax on these amounts.  BUT, near the end of the program it clearly states that I DO owe taxes on the full RMDs, even though they have been rolled back.  I spent about an hour on the phone with a Turbotax support person.  She was very polite, but after many tries could not find a solution.  Her suggestion was that on the form where it reports my RMD, on the next line I state that the full amount is non-taxable.  Turbotax ingests this information, but after the Review states that this is not correct and I can not yet file.  The support person's other suggestion is that I simply do not report the RMDs that were rolled back.  This might solve the problem, but I hesitate to do this since Vanguard has sent the required RMD forms to the IRS.  The end result would not be fraudulent, and financially correct, but still what I report and what the IRS has received would not mesh.  From all of this I have to believe that Turbotax has a problem that needs fixing, and that their support personnel, while polite, are poorly trained.  I hope they fix it soon.


I suggest that you delete the 1099-R totally and then re-enter.   ANY RMD question  MUST be answered that "NO RMD was required or taken".

 

Your 1040 form line 4a should have the 1099-R box 1 amount and 4b (taxable amount should be zero) 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.**