Kopitiam
New Member

IRA RMD

I took my RMD for 2020 from my Traditional IRA and deposited the net proceeds (less tax)  it as Contribution to my ROTH IRA in 2020.  Is this a Roll-over or Recharacterization?  How do I declare this in my 1040?

DanaB27
Expert Alumni

Retirement tax questions

Generally, RMDs cannot be converted to a Roth IRA but RMDs were waived in 2020. You must indicate to TurboTax that none of the distribution was RMD. If you already enter the 1099-R as RMD and changing your answer to the RMD question doesn't work then you have to delete and renter the 1099-R form. 

 

  1. Click on "Search" on the top right and type “1099-R”
  2. Click on “Jump to 1099-R”
  3. Click "Continue" and enter the information from your 1099-R
  4. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account
  5. Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the amount next to "Amount converted to a Roth IRA account"
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Retirement tax questions

@Kopitiam 

 

IRS says:


"You can withdraw all or part of
the assets from a traditional IRA and reinvest them (within
60 days) in a Roth IRA. The amount that you withdraw and
timely contribute (convert) to the Roth IRA is called a conversion
contribution. If properly (and timely) rolled over,
the 10% additional tax on early distributions won’t apply.
However, a part or all of the distribution from your traditional
IRA may be included in gross income and subjected
to ordinary income tax."