@Trygve wrote:
You are mistaken. There were RMDs in 2020
But they could be reversed (rollover) prior to 8/31/2020. After that it’s taxable
If you say its not a RMD then it’s a taxable transaction
Again Turbo admitted their flaw
Additionally the IRS matches 1099Rs to returns eventually. A discrepancy will create a notification. This is done automatically
You misunderstand. ALL Traditional IRA distributions are taxable whether is is a RMD or not.
Rolling a Traditional IRA over (putting the money back) makes it not taxable because you did not keep the money.
RMD's are not allowed to be rolled over under most circumstances, however §2203 of the CARES Act was a temporary waiver of the RMD for certain retirement plans for the 2020 tax year. And stated that the requirement (for RMD's) shall not apply for the 2020 calendar year.
Therefore any money distributed from an IRA in 2020 could not be a RMD if the RMD requirement did not exist.
Simply say the distribution was NOT a RMD and then you will get the screen to roll it back.
**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.**
