Entering return of entire 2020 RMD from Fidelity IRA in Turbotax

I took my 2020 RMD early and then asked Fidelity to reverse the RMD in July 2020.

Turbotax asks me how much of the money I actually returned because it thinks Fidelity withheld money for state and local taxes. On Turbotax, I checked, "I added X to what I received to rollover the entire distribution."

Is this the correct choice? I'm thinking that because the 1099R and form 5498 totals match it must be.

Thanks,

Patrick

Expert Alumni

Mar 20, 2021 6:31:31 AM

Yes, if you added other money to return to the account to cover the taxes withheld then it is the correct choice.

For example, you had a $10,000 distribution and had $1,000 tax withheld. Then you will have the add $1,000 from other funds to get to a $10,000 rollover amount.

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Entering return of entire 2020 RMD from Fidelity IRA in Turbotax