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I completed RMD distribution in 2020. Later I returned the distribution amount to IRAs. How do I enter this information. Also I paid Fed and State taxes on distributions?

 
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3 Replies
MinhT1
Employee Tax Expert

I completed RMD distribution in 2020. Later I returned the distribution amount to IRAs. How do I enter this information. Also I paid Fed and State taxes on distributions?

The RMD that you repaid are considered as rollovers to the same account and is not taxed.

 

Enter your form 1099-R normally. After entering your form 1099-R, click Continue until you reach the screen Tell us if you moved the money through a rollover or conversion. Check the radio button which corresponds to your situation then click Continue and follow the interview. Enter the amount repaid as a rollover and it will be excluded from taxation. You will still have the credit for taxes withheld.

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stvwllms
New Member

I completed RMD distribution in 2020. Later I returned the distribution amount to IRAs. How do I enter this information. Also I paid Fed and State taxes on distributions?

The solution describe by MinhT1 simply didn't work for me.  I tried going into forms and checking the box for a complete rollover but that didn't work either, the distribution is still included in taxable income.  Other suggestions?

I completed RMD distribution in 2020. Later I returned the distribution amount to IRAs. How do I enter this information. Also I paid Fed and State taxes on distributions?

Since there is no RMD required for 2020, after you enter the 1099R say it was NOT an RMD and then that you rolled it over (even if back into the same account). Was any withholding taken out? If it was then did you replace the withholding with your own money? Otherwise the withholding will be a taxable distribution itself. You will get credit for the withholding taken out on 1040 line 25b.


If you already entered the 1099-R as RMD and changing your answer to the RMD question doesn't work then you have to delete and renter the 1099-R form.

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