How much of a distribution is considered a RMD if ...
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arsk3121
Level 1

How much of a distribution is considered a RMD if it pertains to an inherited IRA where the "ten-year rule" must be used.

I am the beneficiary of an inherited IRA, and I have determined that I must distribute this inherited IRA within 10 years of the original owners death (in 2020). TurboTax is asking me "How much of the $XXXX.XX was a RMD? Since the decedent would have turned 70 1/2 in 2019, they may have taken a minimum amount of money out of the account for 2019 and 2020. This is known as a required minimum distribution (RMD). The plan administrator, banker or broker usually figures out how much money must be taken out each year.
Because of a law change on March 27, 2020 as part of the CARES Act, required minimum distributions have been suspended for 2020 for certain accounts.
Important: If you took your RMD and later rolled it back into your account under the CARES Act, answer 'None of this withdrawal was a RMD' here. If you took your RMD as usual, go ahead and let us know below."

I assume all of the distributions from this inherited IRA are "required". I must distribute it all within 10 years. But the question sounds like it is asking about the RMD for the decedent. The answer is 'none' if it pertains to the decedent, the answer is "the entire distribution" if the question is aimed at me, the beneficiary. How do I answer?
2 Replies
macuser_22
Level 15

How much of a distribution is considered a RMD if it pertains to an inherited IRA where the "ten-year rule" must be used.

There was no 2020 RMD for any IRA so answer the RMD question as None required" or  "None of this distribution was a RMD" depending  on how the question is asked.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
dmertz
Level 15

How much of a distribution is considered a RMD if it pertains to an inherited IRA where the "ten-year rule" must be used.

Deleted.

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