Due to Covid, RMD has been waived for 2020. See details below. Usually, you should see a code 7 in box 7 on your Form 1099-R. If the distribution is for your RMD for the year, it will be treated as a normal distribution. The code 7 will be marked in Box 7 on your Form 1099-R.
Besides, it will also be reported on a Form 5498 "IRA Contribution Information" where box 11 and 12 will be checked .You are not required to report this form to the IRS.
In the past, required Minimum Distributions (RMDs) are minimum amounts that a retirement plan account owner must draw out annually starting with the year that he or she reaches 72 (70 ½ if you reach 70 ½ before January 1, 2020), if later, the year in which he or she retires. However, if the retirement plan is an IRA or the account owner is a 5% owner of the business subsidizing the retirement plan, the account holder must begin withdrawing the RMDs once he or she is age 72 (70 ½ if you reach 70 ½ before January 1, 2020), regardless of whether he or she is retired. Due to the Covid, the CARES Act waives required minimum distributions (RMDs) during 2020 for IRAs and retirement plans, including for beneficiaries with inherited IRAs and accounts inherited in a retirement plan. You're not required to withdraw RMDs for 2020 if you have been affected by the pandemic. To learn more from the IRS, click here: RMDs waived
In TurboTax program, once you are in the 1099-R section, you will follow through the on-screen interview questions that will lead you to the RMD questions. Here are the steps:
In TurboTax online,
- Sign in to your account and select Pick up where you left off
- From the upper right menu, select Search and type in 1099r and Enter
- Select the Jump to 1099r
- Follow prompts
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