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sncasabo1
New Member

I am 73 years old. I continued to take distributions from my IRA. If the RMD was suspended for 2020, do I indicate any of the distribution was for RMD.

I am confused by the CARES Act and whether I need to report any RMD even if I took distributions from my Vanguard IRA.
1 Best answer

Accepted Solutions
fanfare
Level 15

I am 73 years old. I continued to take distributions from my IRA. If the RMD was suspended for 2020, do I indicate any of the distribution was for RMD.

of course you need to report a distribution.

The Act made your RMD voluntary rather than required.

 

You would tell TurboTax none of that amount is RMD.

That won't change anything.

View solution in original post

12 Replies
fanfare
Level 15

I am 73 years old. I continued to take distributions from my IRA. If the RMD was suspended for 2020, do I indicate any of the distribution was for RMD.

of course you need to report a distribution.

The Act made your RMD voluntary rather than required.

 

You would tell TurboTax none of that amount is RMD.

That won't change anything.

View solution in original post

TomM-2
Returning Member

I am 73 years old. I continued to take distributions from my IRA. If the RMD was suspended for 2020, do I indicate any of the distribution was for RMD.

I have a question on Pension Plan withdrawals section of Turbo-Tax concerning the RMD.

For the 1099 distribution form I entered the following:

1.-The Gross Distribution was $3,193.75

2-A. The Taxable Amount was $1,752.39

2-B.  Total Distribution is checked

3 – 6 – Left Blank

  1.   Normal Distribution

IRA/SEP/Simple Checked

8 – 19 Blank

The taxable amount shows up as $3,193.75 not $1,752.39. 

How can I correct this.

Tom M.

Irene2805
Expert Alumni

I am 73 years old. I continued to take distributions from my IRA. If the RMD was suspended for 2020, do I indicate any of the distribution was for RMD.

The taxable amount in box 2a is usually the box 1 amount unless you have after-tax contributions in the retirement plan and use the simplified method.

 

If this is a pension plan and not an IRA, you can remove the check from the IRA/SEP/Simple box and the taxable amount will flow to line 5b of the 1040.

 

 

TomM-2
Returning Member

I am 73 years old. I continued to take distributions from my IRA. If the RMD was suspended for 2020, do I indicate any of the distribution was for RMD.

Hi Irene:

 

Here’s my situation:

 

Gross Distribution on Tax year 2020 Form 1099-R is $3,193.75. This consists of the following:

 

A- 2019 RMD $1,441.36 distributed in 2020, this amount was claimed on my 2019, Form 1040-SR on Line 4-B as Taxable Income and I completed a Form 5329 with attachments. I Did not receive a Form 1099 in 2019 from USAA Financial Services. An automatic deduction was expected but never took place.

 

B- 2020 RMD $1,752.39 was distributed in 2020 and being claimed on Form 1040-SR as taxable income.

 

I completed the 1099-R Turbo Tax Distribution from Pensions, IRAs, ect form for this pension and included the above statement.   Will this Turbo Tax Form be included in my E-file to Feds.  Also, I wanted to include a copy of my 2019 1040-SR with the return.  Can I do this?

Thanks

TomM-2
Returning Member

I am 73 years old. I continued to take distributions from my IRA. If the RMD was suspended for 2020, do I indicate any of the distribution was for RMD.

I can’t get the Total Distribution of $3,193.75 to appear in Line 4-A and the Taxable Amount of $1,752.39 to show up in line 4-B

 

Your recommendation below did not work

If this is a pension plan and not an IRA, you can

  1.  remove the check from the IRA/SEP/Simple box
  2. and the taxable amount will flow to line 5b of the 1040.
SamS1
Expert Alumni

I am 73 years old. I continued to take distributions from my IRA. If the RMD was suspended for 2020, do I indicate any of the distribution was for RMD.

To change the taxable amount, you will need to enter the amount of the 2019 distribution as basis in the nondeductible contribution screens.  This will decrease the taxable amount of the IRA by the 2019 distribution.  

 

We don't have specific information on the income qualifications or procedures for the third stimulus payment because the measure hasn't been passed yet. However, If you had issues receiving your earlier stimulus, then the best way to ensure that you are one of the first to receive any future stimulus payments is to file your 2020 tax return as early as possible and use direct deposit so that the IRS will have your updated information. 
 
You can find the most up to date information from the IRS here, and updates from TurboTax here as they develop.

japatt
New Member

I am 73 years old. I continued to take distributions from my IRA. If the RMD was suspended for 2020, do I indicate any of the distribution was for RMD.

This question fits my case.  There was only one reply. May I assume that this answer is correct according to Turbotax?

npierson7
Level 1

I am 73 years old. I continued to take distributions from my IRA. If the RMD was suspended for 2020, do I indicate any of the distribution was for RMD.

You have to report the distribution, however you don't need to indicate the distribution was RMD, since RMD weren't required in 2020.

minboxing
New Member

I am 73 years old. I continued to take distributions from my IRA. If the RMD was suspended for 2020, do I indicate any of the distribution was for RMD.

I'm 77 years old.  I continued to take distribution from my IRA.  Since 2020 RMD is suspended ,  I returned a check of the same amount of RMD I received back to my IRA account.  My IRA  account deposit it.   How could I to report it to Turbo Tax for $ 0  Tax?

SamS1
Expert Alumni

I am 73 years old. I continued to take distributions from my IRA. If the RMD was suspended for 2020, do I indicate any of the distribution was for RMD.

The re-depositing of RMD distributions back into your IRA needed to be completed by 8/31.  Please follow these steps to enter your 1099-R and RMD rollover:

 

  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” and enter your 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. 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 have to delete and re-enter the 1099-R form. 
  
You can verify your entry by looking at your Form 1040 line 4 or 5:

  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

 

 

fanfare
Level 15

I am 73 years old. I continued to take distributions from my IRA. If the RMD was suspended for 2020, do I indicate any of the distribution was for RMD.

you can have zero tax on this even if you do  not complete paying it back  by the due date with extensions, which is October 15 2021.

You only have to pay back one third of the amount when you spread the tax  over three years.

It will be a tax free operation if you pay it back in thirds.

 

You must have been impacted by COVID and have a COVID-related distribution.

fanfare
Level 15

I am 73 years old. I continued to take distributions from my IRA. If the RMD was suspended for 2020, do I indicate any of the distribution was for RMD.

Even if you don't pay back anything back for 2020, you can get all  your tax refunded if you pay it all back by the end of the third year. 

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