dmertz
Level 15

Retirement tax questions

Saying that you took $0 because zero $0 was the amount required has exactly the same meaning as saying that you didn't take anything because no distribution was required.  $0 = nothing.

 

Form 1099-R is a form that reports distributions.  It says nothing about whether or not a distribution is an RMD.

 

TurboTax asks two entirely independent questions about RMDs.  One is to determine how much is eligible for rollover and is asked for each Form 1099-R entered.  The other asks about RMDs in aggregate to determine if Form 5239 Part IX is needed to report that you did not satisfy all required distributions.  In response to this question if you say that you received all of your RMD, no Form 5329 Part IX is generated.  If you say that you were not required to take an RMD, no Form 5329 is generated.  Since no distributions were required to be made in 2020 (other than periodic distributions from pensions which most people don't even realize are required distributions), either of these choices produces the desired result.

 

Unfortunately, in some areas of TurboTax uses the term "RMD" (Required Minimum Distribution) to refer to distributions that ended up not actually being required.  This perpetuates the misconception that people have that the distribution is still an "RMD" even though the distribution was, in the end, not required.