I rolled my RMD back into my Inherited IRA in 2020 per the CARES act. I received a 1099-R for the RMD withdrawal and a 5498 for the rollover. How to report in TurboTax?

[EastWest524]

Katie_B:

THANK YOU!  I tried what you suggested and it worked perfectly.  It was driving me crazy not to be able to check "inherited" when the IRA was, in fact, inherited from a non-spouse.   So, for anyone new to this thread and facing the same conundrum - do what Katie_B said:

1) Follow all of the steps on the online process but DO NOT click "inherited" or you will never be directed to the rollover info page (and your RMD will remain taxable in the online system).

2) Once you've completed the 1099-R section and it's saved into the system and the numbers look right, go back and click "inherited" and complete the additional associated steps.   When I did that the numbers didn't change (i.e. my RMD remained untaxed) and now the accompanying info is totally correct as well.  

This seems to be the workaround we have all been looking for.  So glad I found this thread - thanks  again!  

[Nancy D]

Thank you all.  I also rolled back an inherited IRA and Turbo Tax was not allowing me to indicate the rollover.  So I did what you suggested and first deleted and reimported the IRA. When it came to the question, did you inherit the IRA from National Financial Services (eg. Fidelity), this time I answered NO.   (which seems sort of correct, since I didn't inherit the IRA from Fidelity, I inherited it from my mother). But Turbo Tax must have known it was an inherited IRA because Box 7 had a code of 4 for death. Their next question was Tell us when this person was born. I continued to step through the interview, Answered NO to none of this withdrawal was an RMD, answered that I moved the money to another retirement account (or returned it to the same account) and that I rolled over all of this money.  Once I did this, everything worked fine.  

[jennyjohn8484]

You don't have to enter incorrect information on your 1040 to try and trick the system.  After you're done filling in the 1099-R information, open the forms view.  Find your 1099-R for your RMD.  Check the box that says the entire amount of the distribution was rolled over.   And the taxable amount that was originally added will be deleted by TurboTax.  

[jennyjohn8484]

You don't have to incorrectly say it was inherited from your spouse.  Just open the forms view and check the box indicating that you rolled over the entire amount.  And the added tax will be removed.

[jennyjohn8484]

You don't need to try and trick the system by entering incorrect information.  Just open the forms view and check the box indicating that you rolled over the RMD.  The added tax will disappear.

[dmertz]

Most TurboTax users use the online version of TurboTax which does not have forms mode.  The workaround works for all users.

[jennyjohn8484]

Thank you for the clarification.  I've always bought the CD-based Premier version of TurboTax.  However, I don't load the CD from my computer.  I still download it from Intuit's website.  So I just assumed it was the same version.