RMD income for 2019

Forum|Forum|6 years ago
April 5, 2020
1 reply
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I have been told the RMD for 2019 is not taxable. If that is true, how do we handle the income amount of RMD in Turbo Tax this filing season?

MaryK4

Level 15

The RMD is the REQUIRED MINIMUM DISTRIBUTION. It is still taxable- but in 2019 the requirement to start the RMD. The law raises to 72 from 70½ the age at which individuals must begin taking RMDs from their retirement accounts. Important: The new law only applies to people who turn 70½ after December 31, 2019.

If you turned 70 1/2 before January 1, 2020 your RMD requirement did not change so you must indicate it in TurboTax to avoid the excise tax for not taking it.

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Chigung2

Level 2

Dear MaryK1101,

I checked TurboTax 2019, and it treated the RMD amount as non-taxable, just as the original author of the question said. For example, I had $33K taxable amount of traditional IRA roll-over to Roth IRA in 2019, but TurboTax insisted on removing the $13K RMD as non-taxable, and only leaving $20K in as taxable. I can't change its calculation; and I'd be happy to pay less tax; but will I get into trouble with IRS later, if it's a software bug in TurboTax?

Thanks,

Chigung2