Did1st RMD 2019 from multiple accts. Rolled procee...
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J-Arnold
New Member

Did1st RMD 2019 from multiple accts. Rolled proceeds to new IRA No money. Will turbo do it? Where do I enter it? where to enter that to TurboTax. My only income 2nd

Had1st IRS RMD 2019. Took no money out. Rolled all proceeds into personal IRA. Was told no capital gains tax, just regular income tax. Will Turbo handle this for me? Where do I enter info about it?
3 Replies
fanfare
Level 15

Did1st RMD 2019 from multiple accts. Rolled proceeds to new IRA No money. Will turbo do it? Where do I enter it? where to enter that to TurboTax. My only income 2nd

do you have a 1099-R reflecting this activity?

 

Note: RMD money cannot be rolled over into a new IRA. (that would defeat the whole point of an RMD).

dmertz
Level 15

Did1st RMD 2019 from multiple accts. Rolled proceeds to new IRA No money. Will turbo do it? Where do I enter it? where to enter that to TurboTax. My only income 2nd

RMDs are not eligible for rollover.  Since you were age 70½ or over in 2019, you are also not permitted to use these funds to make a new regular traditional IRA contribution for 2019.

Opus 17
Level 15

Did1st RMD 2019 from multiple accts. Rolled proceeds to new IRA No money. Will turbo do it? Where do I enter it? where to enter that to TurboTax. My only income 2nd


@dmertz wrote:

RMDs are not eligible for rollover.  Since you were age 70½ or over in 2019, you are also not permitted to use these funds to make a new regular traditional IRA contribution for 2019.


You will get a 1099-R from the trustee of each plan.  Report the 1099-R as shown.  It will be a regular distribution subject to normal income tax.  When you are asked "what did you do with the money", do NOT check that you rolled it over into a new IRA, that's not allowed.  

 

Then, you made new contributions of different money into an IRA (the dollar amount happened to be the same as the RMDs but it was not a rollover.  It was new contributions of different money.)   If this was a traditional IRA, the contributions are not allowed in 2019.  You will pay a penalty on excess contributions, unless you withdraw the money before the due date of your tax return.  The due date was July 15 (past) unless you got an extension before July 15 in which case the due date is October 15.  (You can't get an extension now if you didn't ask for one before July 15.)  You must report the excess contributions on your tax return and pay the penalty.

 

If you made these new contributions into a Roth IRA, there is no penalty as long as the contributions were less than your limit ($7000, or less depending on your other income and employment status.)

 

Make sure to report each separate transaction (withdrawals and new investments).  They are not rollovers or trustee to trustee transfers. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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