CARES RMD Repayment

Forum|Forum|6 years ago
June 27, 2020
3 replies
42 views

I took my RMD for this year back in January 2020. I have two IRAs and took the yearly required amount from one of them. I would like to pay the money back (According to the CARES act) but not into the IRA I took the money from, but into the other IRA which is handled by a bank. Can I do this or does the payment need to go back into the IRA it was originally taken from?

Best answer by dmertz

Expert Reviewed

A repayment of a January 2020 distribution that would be an RMD were it not for section 2203 of the CARES Act is permitted to be repaid under IRS Notice 2020-51 only to the distributing IRA. You are not permitted to make the repayment to a different IRA. After making the repayment to the distributing IRA you can do a non-reportable trustee-to-trustee transfer of any amount you wish from one IRA to another.

RobertG

Level 12

In the case of an IRA owner or beneficiary who has already received a distribution of an amount that
would have been an RMD in 2020 but for section 2203 of the CARES Act or section 114
of the SECURE Act, the recipient may repay the distribution to the distributing IRA, even
if the repayment is made more than 60 days after the distribution, provided the
repayment is made no later than August 31, 2020.

IRS Notice 2020-51

[Edited 06/29/2020|1:56 PST]

@mikult

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dmertzAnswer

Level 15

Expert Reviewed

GAAZ

Level 2

1099R for distribution from traditional IRA. Taxable amount not determined checked, taxable amount = gross

distribution, distribution code 7, IRA box checked.

Part of distribution was a QCD and the bulk of the distribution was returned to the IRA since the RMD not is required in 2020. I answered the questions correctly but TurboTax want to tax all but the QCD.

Suggestions?

DaveF1006

Level 15

It depends. If you continue through the interview process in Turbo Tax after reporting your QCD donation, you will reach a screen that says Tell us if you moved the money through a rollover or conversion. Here you will indicate that you rolled some of it over to an IRA or other retirement account. I included a screenshot that demonstrates this. After selecting the first entry of the screen, there will be additional questions on how much of it was a rollover. What ever amount you enter will become non-taxable at this point.