Since the RMD rule is suspended, RMDs taken in 2020 are considered eligible for rollover. Therefore, RMDs can be rolled over to another IRA, another qualified retirement plan, or returned to the original plan by August 31, to avoid paying taxes on that distribution. Here is how to report this in Turbo Tax.
- Go to federal>wages and income>retirement plans and social security>Ira (401K), pension plan Withdrawals(1099R) Edit
- Select edit next to the 1099-R that was the RMD distribution
- Next screen you mention that this is from a qualified plan
- Next screen is important. You must indicate that none of this withdrawal was an RMD>continue
- Next question asks you what you did with the money here you will indicate you moved it to another retirement account or returned the money to the same retirement account.
- A drop down will now appear on your screen and you will choose did a combination of rollover, converting, or cashing out the money.
- When you choose this, a screen will appear that will allow you to enter the amount that you returned to the same retirement account.
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