I took a distribution from my Inherited IRA of $8,...
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Level 2

I took a distribution from my Inherited IRA of $8,800. Under the CARES act, I repaid $8,743.28 (the RMD amount). Where do I enter this rollover amount?

I also have a traditional IRA and SIMPLE IRA, portions of which were converted to my Roth.  During that process, Turbotax asked what I did with the money.  Turbotax does not ask what I did with the money for my Inherited IRA (I believe because you aren't supposed to be able to do a rollover for an Inherited IRA, but the CARES act changed that), so I can't seem to find where to enter this information.  Thanks for your help!
7 Replies
Employee Tax Expert

I took a distribution from my Inherited IRA of $8,800. Under the CARES act, I repaid $8,743.28 (the RMD amount). Where do I enter this rollover amount?

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:

  1. 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.
  2. Below the grey line, mark the radio button All of this distribution was an RMD.
  3. 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).
  4. Below the line that appears, choose the button that you rolled over all of this money.
  5. 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.
  6. The next screen should confirm that you don't have to pay tax on the rollover.

 

Level 2

I took a distribution from my Inherited IRA of $8,800. Under the CARES act, I repaid $8,743.28 (the RMD amount). Where do I enter this rollover amount?

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.  

Level 2

I took a distribution from my Inherited IRA of $8,800. Under the CARES act, I repaid $8,743.28 (the RMD amount). Where do I enter this rollover amount?

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".

Employee Tax Expert

I took a distribution from my Inherited IRA of $8,800. Under the CARES act, I repaid $8,743.28 (the RMD amount). Where do I enter this rollover amount?

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.  

 

 

 

Level 15

I took a distribution from my Inherited IRA of $8,800. Under the CARES act, I repaid $8,743.28 (the RMD amount). Where do I enter this rollover amount?

You cannot rollover any RMD, whether or not it is an Inherited IRA RMD.

BUT

since in 2020 a distribution is not an RMD, it could have been rolled back in within the allowed time window.

Level 15

I took a distribution from my Inherited IRA of $8,800. Under the CARES act, I repaid $8,743.28 (the RMD amount). Where do I enter this rollover amount?

TurboTax has lots of bugs and needs to issue an update.

Try again in a couple of weeks.

Level 2

I took a distribution from my Inherited IRA of $8,800. Under the CARES act, I repaid $8,743.28 (the RMD amount). Where do I enter this rollover amount?

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.  

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