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marilano
Returning Member

How to include an indirect rollover of half of my RMD for an inherited 457b plan when Turbotax only lets me include either the full RMD or NONE of the RMD as taxable?

Due to the CARES act, I rolled over (indirectly) one of my 2 annual RMD's on an inherited 457b plan for 2020, but Turbotax only lets me include eitiher the full amount of both RMD's as taxable or NONE of the RMD as taxable and I've spent countless hours trying to work around this problem. Help!
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1 Reply
MarilynG1
Expert Alumni

How to include an indirect rollover of half of my RMD for an inherited 457b plan when Turbotax only lets me include either the full RMD or NONE of the RMD as taxable?

When you enter your 1099-R, indicate that 'none of this distribution is RMD'.  

 

The RMD requirement has been waived for 2020, as you mentioned.  

 

Continue, and you will be able to indicate the amount of the distribution that was rolled over.

 

If you indicate that the distribution was not 'covid-related' the full amount of the distribution will be taxable if the amount in Box 2a is the same amount as Box 1, and you have Code 4 in Box 7 for an inherited retirement plan and the rollover was not a trustee-to-trustee transfer. 

 

When you take a distribution of the rolled over amount later, it will not be taxable. 

 

Click this link for more info on Inherited Retirement Plans

 

 

 

 

 

 

 

 

 

 

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