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cdmcconnaughey
New Member

How do I file my 2020 employee rollover to reverse my 2020 R.M.D. that I took in Jan.2020?

 
5 Replies
DanaB27
Expert Alumni

How do I file my 2020 employee rollover to reverse my 2020 R.M.D. that I took in Jan.2020?

Please follow these steps to enter your 1099-R:

 

  1. Login to your TurboTax Account 
  2. Click on the Search box on the top and type “1099-R”
  3. Click on “Jump to 1099-R”
  4. Continue until "How much was a RMD?" and select "none"
  5. Continue "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
  6. Continue answering the questions.

 

RMDs were waived for 2020 and you must indicate to TurboTax that none of the distribution was RMD. If you already enter the 1099-R as RMD  and changing your answer to the RMD question doesn't work then you might have to delete and renter the 1099-R form. 

[Edited 01/11/2021 | 7:07am PST]

 

 

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SanDieggo
Level 2

How do I file my 2020 employee rollover to reverse my 2020 R.M.D. that I took in Jan.2020?

You said

 

...RMDs were waived for 2020 and you must indicate to TurboTax that none of the distribution was RMD. If you already enter the 1099-R as RMD then you must delete and reenter the 1099-R form. Only editing the 1099-R form and changing your answer to the RMD question will not work...

 

I just edited the 1099-R entry per your instructions and switching over to Forms mode the 1040 line 4b is zero and the word "ROLLOVER" appears under the line 4a amount. What's not working if you don't delete and re-enter??  Looks like it worked unless there are other things behind the scenes that requires a complete refresh of the 1099-R entry.  In essence by saying the distribution was not an RMD conflicts with what is encoded on the actual 1099-R. ( at least on mine) Won't the IRS note this and start an inquiry? 

 

Was there not a clean dialogue coded to properly handle this transaction?  Sounds like this is a backdoor "solution" to game the S/W.    

 

 

cdmcconnaughey
New Member

How do I file my 2020 employee rollover to reverse my 2020 R.M.D. that I took in Jan.2020?

I originated this question on how to claim my returned 2020 RMD and this is what Turbo did: 

Turbo tax asked me what happened to my 2020 RMD cash that I took early, and then returned, it asked if it was moved into another savings acct?  

I said yes and and Turbo said fine, I owe no taxes, and said it was a rollover on my taxes filing. I'm assuming everything is okay and it accepted my return.

DanaB27
Expert Alumni

How do I file my 2020 employee rollover to reverse my 2020 R.M.D. that I took in Jan.2020?

Yes, if it states ROLLOVER and doesn't show taxable on line 5b/4b then you entered the return of money as rollover correctly. 

 

  1. Click on "Tax Tools" in the left menu
  2. Click "Tools"
  3. Click "View Tax Summary" in the Tool Center window
  4. Click on "Preview my 1040" on the left

 

@cdmcconnaughey

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DCDAGO1
Level 1

How do I file my 2020 employee rollover to reverse my 2020 R.M.D. that I took in Jan.2020?

I do not understand why there is a question for RMD if it is not required for 2020. I indicated that I took RMD for 2020 and then rolled it back to the account. Program indicated that the amount was not taxable. Yet on 1040 the RMD was taxed. I am a retired CPA so I knew something was wrong.  Most people would think that it was not taxable because the program indicated that it wasn't. I think a fix is necessary,

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