You are correct - The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, waives required minimum distributions during 2020 for IRAs and retirement plans, including beneficiaries with inherited accounts.
After entering the 1099-R you can indicate that you rolled over the funds by following these steps:
- A few screens after the 1099-R input screen, you should see a screen, About this Inherited Retirement Account. Mark the radio button Yes, some or all of this withdrawal was an RMD.
- Below the grey line, mark the radio button All of this distribution was an RMD.
- On the next screen, What did you do with the money from this payer? Mark the radio button that you moved the money to another retirement account (or returned it to the same retirement account).
- Below the line that appears, choose the button that you rolled over all of this money.
- On the screen, Did [you] rollover all of this $XX (Box 1) to another retirement account? Mark the Yes button, if you rolled over the entire amount.
- The next screen should confirm that you don't have to pay tax on the rollover.
Thank you for the reply. When I migrate to the 1099-R's that I have and click on "edit" for the Inherited IRA 1099-R, it asks me if it's a 1099-R, CSA-1099-R, CSF-1099-R, or RRB-1099-R and I click the radio button for 1099-R for retirement plan, pension, IRA, etc. The next screen has my entered 1099-R information. It is noted that the code in box 7 is "4 - Death" (it is not "G" for a rollover contribution). The next screen asks where this distribution is from and I mark the radio button for "pension/IRA distribution received before retirement age". The next screen asks if I inherited the IRA and I mark "yes". The next screen asks if there were non-deductible contributions made by the decedent and I mark "No". The next screen asks when the decedent was born and I mark the appropriate button. And, unfortunately, that's it. There is no question asking if this was an RMD. I did call in to TurboTax and they indicated that some forms aren't completed yet, so this issue may be resolved in a future update. . . . but it seems like there should be a way to enter this repayment. Thanks for your response.
I have read various threads and researched this topic as I am having similar problems. I hope to update this thread if a solution becomes available. I have read that TT will update on Feb 18 with a solution. Until then my Federal is "on-hold".
Normally, as a non-spouse beneficiary, you must directly roll over the inherited assets to an Inherited IRA and you will need to withdraw all assets from the inherited IRA within 10 years following the death of the original account holder. Exceptions to the 10-year distribution requirement applies to assets left to an eligible designated beneficiary. The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, waives required minimum distributions during 2020 for IRAs and retirement plans, including beneficiaries with inherited accounts.
In TurboTax, if you turned 70 1/2 in 2020, there is no RMD as the Cares Act raised the age to 72.
When I talked on the phone to TT personnel, they indicated that form 8915-e was not in final phase yet and a quick Google search indicates that form 8915-e is still draft on the IRS website. They said on the phone that updates to the forms were expected on February 11th and 18th. So, it looks like this issue may be resolved when those forms are finalized. I guess we'll have to wait and see. . . thanks for the replies.