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posted Sep 11, 2020 7:44:04 PM

I was unemployed in 2019 and withdrew 100K from my IRA to cover expenses. How do I report this money? Is it considered income?

I had no employment income in 2019 and instead paid my expenses from money I have inherited. The money is divided between three accounts: an IRA, a supplemental IRA, and an account with funds earmarked for the future purchase of a home. During the year, I took two withdrawals of 50K each. I’m assuming that I must report these on my 2019 return, but I’m not sure where in TT to enter them. Are the withdrawals considered income, etc.? Also, I separately took a mandatory minimum distribution from my IRA, which I transferred to my supplemental IRA account. Does the fact that I transferred the distribution to another account make any difference in terms of how I report it? Any help regarding these questions would be greatly appreciated.

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2 Replies
Level 15
Sep 11, 2020 8:01:08 PM

What is a supplemental IRA Account?  You can not transfer a RMD required minimum distribution to another IRA.  You have to take it out. You should have received a 1099R from each account you took a distribution.

 

The easiest way to get to the 1099-R entry screen is to simply search for 1099-R (upper- or lower-case, with or without the dash) in your TurboTax program and then click the "Jump to" link in the search results.

 

Enter a 1099R under

Federal Taxes on the left side

Wages & Income at the top

 

Then scroll way down to Retirement Plans and Social Security,

Then IRA, 401(k), Pension Plans (1099R) - click Start or Revisit

@dmertz 

 

 

Level 15
Sep 11, 2020 8:19:35 PM

A  RMD is not eligible to be rolled into any other tax deferred account.   It can be put into a regular brokerage or savings account.     Any RMD that was put into another IRA is an excess contribution to that IRA subject to penalties until removed.