You'll need to sign in or create an account to connect with an expert.
Then you have to replace the taxes with your own money. Then you still add the withholding taken out back on your tax return to get credit for it.
FYI... Fidelity did not make an error. Although the rmd was not required for tax year 2020 it also was not forbidden. So if you set up the rmd on an auto distribute then Fidelity did it correctly. You failed to tell fidelity to skip this year's rmd. Under no circumstance were they allowed to change your distribution without your permission. Now you can return the distribution if you like by the end of the year however as already mentioned you will also need to put the amount of withholdings back as well out of your own pocket and wait for the refund on the tax return when you file it next year
The deadline for rolling over the distribution is the 60th day following the date of the distribution unless the you qualify as and individual who is eligible to receive a Coronavirus-Related Distribution. If the distribution was from an IRA and does not qualify as a not a CRD, you are also subject to the one-rollover-per-12-months limitation.
The custodian is required to take your word for it as to whether "you qualify as and[sic] individual who is eligible to receive a Coronavirus-Related Distribution.".
You have 60 days to return the distribution. You will have to make up the withholding from other funds, you will get it back as part of your tax refund. If you return less than the full amount, the difference will be a taxable distribution. For example, if the withdrawal was $10,000 and you received $8000 with $2000 going to the IRS as withholding, and then you only returned the $8,000; then you have a $2000 taxable distribution, but the taxes on that will be less than the withholding and you will still get some kind of refund or the withholding will be applied to your other taxes due.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Dberg128
Returning Member
jignesh123
Level 1
sabedsfsf
Level 1
CDM523
Returning Member
nancywho
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.