I did include it in 2018 income because the IRS was going to charge a 50% penalty. I discovered the 2018 RMD distribution shortage in February 2019 as I was filing my return. I included it in my 2018 return and the IRS waived the penalty.
The problem is that I got the distribution in 2019 and the investment company included the 2018 amount in my 2019 1099-R.
In Turbo Tax, I seem to have 2 choices: (1.) Put a reduced amount in the blocks 1 and 2 in the Turbo Tax 1099-R entry. or (2.) Match the 1099-B block 1 entry in Turbo Tax but reduce the block 2 entry by the amount I included in income for 2018 and check the box that indicates that I rolled it back into the same IRA.
Which do you suggest?
