CARES RMD Repayment

[macuser_22]

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@pjbgolf wrote:

Are you sure about saying there were no 2020 RMD’s ? I believe the option was to not take the RMD but if you actually did take it it’s still considered RMD and is taxable I believe.

what I still don’t understand is if someone did take their full RMD and tells TT that it was repaid when it wasn’t how does the IRS know it wasn’t repaid.

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NO distribution  taken in 2020 was a RMD.   You could not take a RMD if you wanted to.   Of course you can always take a IRA distribution and it will be taxable  but the IRA custodian is prevented by law (the CARES act) form reporting or counting it as a RMD.  

SeeL

https://www.irs.gov/newsroom/irs-seniors-retirees-not-required-to-take-distributions-from-retirement...

[pjbgolf]

You are correct except for "The RMD suspension does not apply to qualified defined benefit plans."

[DianeW777]

It depends. When the CARES Act passed, it suspended RMDs from many types of retirement accounts including IRAs, inherited IRAs, 401(k)s and inherited 401(k)s in 2020. Defined benefit plans are not exempt from RMDs for 2020, as noted.

If your plan qualifies, you could put it into your other IRS handled by a bank if it is rolled over within 60 days of distribution. If not, then you should contact your plan administrator about how to go about putting it back into your account.

IRS Retirement Topic RMDs and COVID

[dmertz]

Most people don't even realize that their distributions from defined benefit plans are RMDs, so those asking about rolling over "RMDs" are almost invariably asking in regard to distributions from accounts in defined contribution plans or IRAs.

What TurboTax is actually asking with the RMD question is, "How much of this distribution is ineligible for rollover?"  Unfortunately, the TurboTax developers chose to ask this question in a way that obscures its actual intent and is subject to misinterpretation.