By mistake, I withdrew my RMD twice and now I am in a higher and punishing tax bracket. Anything I can do to reduce my RMD to what it should be?

[macuser_22]

You did not take the RMD twice.   You took the RMD once and also took a distribution in excess of the RMD which could be returned to the IRA as a rollover IF returned within 60 days of the distribution.  So if you took it in December then you might still be within the 60 day window.

Unfortunately, if over 60 days then it will just be a taxable distribution that cannot be returned.

[SusanY1]

Maybe.  If it has been sixty (60) days or less since you took the more recent distribution, you may be able to return it using the sixty-day "rollover" rule - if you didn't have any other rollovers in the prior year.   

The rollover rules can get a little complicated, and I don't have all of the information I would need to be sure that this would work in your case, but it can't hurt to try! 

If you think this applies in your case, reach out to your bank or financial adviser for assistance.  For indirect rollovers, as this would be, the burden of proof falls on you, so be sure to keep things such as copies of deposit slips or tracking numbers, etc. to show that deadlines were met.

Your case may be even more likely to generate a request for information from the IRS since the distribution and rollover would be in two different tax years. Don't let that discourage you from taking advantage of this opportunity if you qualify for it, though. Just keep good records!

[gc7873]

thank you for taking the time to answer my question.  I was thinking so much about the RMD that I didn't even consider the rule regarding IRA rollover's 60 day time frame.  This is a great help.  Thank you!

[gc7873]

Thank you for taking the time to answer my question.  I was thinking so much about the RMD that I didn't even consider the rule regarding IRA rollover's 60 day time frame.  This is a great help.  Thank you!

[MLTKJohnso]

I had the same problem!  How do I capture the indirect rollout to the Traditional IRA done within the 60-day window?  

[DanaB27]

If you rolled over the excess amount withdrawn back into the retirement account within 60 days then please follow these steps to enter your Form 1099-R and rollover:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. Continue until "How much of the $XXXXX was a RMD?" screen and select "Only part of this distribution was a RMD" and enter the amount of RMD.
5. Continue "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
6. Continue answering the questions.

Please keep in mind, the RMD cannot be rolled over only the excess amount can be rolled over.

@MLTKJohnso 

[Locopoco]

How to correct a double withdrawal of a simple IRA RMD with half of the amount returned to the IRA account within days. Should a new 1099R be issued with the correct taxable amount be issued? If not, what would be the corrective action I must take?

[VolvoGirl]

When you enter the 1099R you pick you rolled part if it over to another account even if you put it back into the same account.  When it asks what you did with the money you pick you did a combination of cashing it out and rolling it over or converting it.   

[pyeatrakas]

I discovered my error same day and Etrade said rollover by wire from brokerage back into my ira.

however my RMD sows double amount and EtRade says I’ll get a 5498 by May 31.  How does this get rectified?  
im on an extension anyway, because I have one k1 outstanding.

[DianeW777]

Yes, you will be asked what you did with the money when you enter your 1099-R. You can do this when you finish your tax return.

• When you enter your 1099-R in TurboTax, the follow-up questions will let you indicate that you returned a portion of the distribution back to the same IRA.
  • Only 'Some of the distribution....' on the screen 'How much of this distribution applied to your December 31, 2024, RMD'. Enter the RMD amount and then the rest can be rolled over  Only the extra can be rolled over because you are not allowed to roll any portion of the actual RMD. 
• Here's more info on How to Enter a 1099-R.

@pyeatrakas  

[Edited: 04/14/2025 | 3:17 PM PST]

[Locopoco]

My problem was resolved when my 1099 showed taxable amount undetermined. The amount overdrawn was put back into my retirement account, the tax was paid, but I got it back when I filed. Once you enter your 1099 it into Turbo tax, the program will lead you through the process by asking you questions which are easy to answer and the form that you must fill out is there also. One question you are asked is, did you ask for a corrected 1099. I answered yes, however my broker does not do corrected copies. Be sure you know your correct RMD and amount taken and the correct amount of taxes due and paid. I filed and the IRS accepted it.