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Retirement tax questions
Enter the form as you see it. There was no RMD requirement for 2020. If you indicated that it was an RMD, you can delete the form and re-enter it and change your answer.
If you kept the money and did not return it to the account, then the distribution should be adding the gross distribution to income. The withholding will be a credit on your tax return. If there was no state withholding, you will owe the amount of tax, if any, on the state return.
Distributions taken from inherited IRAs are not subject to a 10% early withdrawal penalty in most cases. You should see only the ordinary income tax on your tax return. @greconick
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‎April 1, 2021
2:32 PM