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FogRider
New Member

Do I check Gross Distribution on 1099-R as "None of this withdrawal was an RMD"? (this amount was reinvested in the same account)?

how do you report a suspended RMD? Is it just reported on Turbo-Tax as "non of this withdrawal was a RMD"/
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4 Replies
dmertz
Level 15

Do I check Gross Distribution on 1099-R as "None of this withdrawal was an RMD"? (this amount was reinvested in the same account)?

Correct.  Because RMDs were waived for 2020, none of this distribution was RMD even though that was the original intent of the distribution.

Do I check Gross Distribution on 1099-R as "None of this withdrawal was an RMD"? (this amount was reinvested in the same account)?

For tax year 2020, I made a withdrawal from an IRA when an RMD was not required. Is there an advantage to call the withdrawal an RMD or a simple withdrawal?  Is there a difference in taxes to be paid for an RMD versus a "normal" withdrawal?

DMarkM1
Expert Alumni

Do I check Gross Distribution on 1099-R as "None of this withdrawal was an RMD"? (this amount was reinvested in the same account)?

In normal years the answer is yes.  An RMD not taken, results in a substantial tax penalty (50% of RMD).  You would not want to indicate a normal withdrawal before taking the RMD.  However, this year the penalty for not taking an RMD has been waived.  So your withdrawal is normal with no penalties.

 

     

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dmertz
Level 15

Do I check Gross Distribution on 1099-R as "None of this withdrawal was an RMD"? (this amount was reinvested in the same account)?

Nothing you your tax return distinguishes a distribution that you received as a required distribution from any other regular distribution.  The tax treatment is the same.  The difference is that a required distribution is not eligible for rollover; TurboTax asks how much is RMD only to determine how much is eligible for rollover.

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