@dsachnoff wrote:
Both my wife and I received RDM's for 2020 from USAA at the beginning of the year. In June 2020 Charles Schwab took over our IRAs. I returned the total distribution to Charles Schwab in July since the IRS allowed RMDs to be returned. Since I paid the taxes at time of distribution I thought perhaps I should move the funds to a Roth. In so doing I received another 1099R. So now I have two 1099Rs as does my wife. One from USAA and the other from Schwab. How and where do I indicate the initial funds were returned, however, to Schwab since they now handle the IRAs? It seems like I am getting taxed twice for the RMDs in Turbo Tax.
Don
I answered that a few posts ago but I will repeat.
The conversion 1099-R will be fully taxable.
Delete the 1099-R you rolled over entered and re-enter.
Answer the RMD question that "None of this distribution was a RMD" or "RMD not required" depending on the TurboTax version - because it was NOT a RMD, there were no 2020 RMD's.
If this is an inherited IRA then answer the "Is this IRA inherited" with NO. The purpose of that question is to PREVENT rolling an inherited IRA over, but is allowed for 2020 only.
Then you will get the screen to say it was "moved" and all rolled over.
Also check the box that this was NOT a COVID related distributions - it was a RMD that was returned.
That will put the 1099-R box 1 amount on the 1040 form line 4a with the word ROLLOVER next to it.
**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.**
