Inherited IRA - CARES Act allows repayment of 2020...
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Returning Member

Inherited IRA - CARES Act allows repayment of 2020 distributions

A major rule change for Inherited IRAs is included in the 2020 CARES Act.

 

IRS Notice 2020-51 Part III(D) specifies that all 2020 Inherited IRA distributions can be “repaid” (treated as a rollover) back into the same Inherited IRA they came from, if done by August 31, 2020.  This eliminates otherwise taxable distributions, and applies to all recipients – including non-spouse beneficiaries, and also those who have done another rollover within the previous 12 months.

 

What is the status of support in TurboTax 2020 for this Inherited IRA rule change?   Thank you.

2 Replies
Level 15

Inherited IRA - CARES Act allows repayment of 2020 distributions

When you enter the Form 1099-R reporting the distribution, you'll simply tell TurboTax that you rolled the money over to another retirement account (or returned it to the same account) and the amount that you rolled over.  Unlike 2019 TurboTax, 2020 TurboTax will permit you to report the distribution as having been rolled over despite the distribution having been made to a non-spouse beneficiary.

Returning Member

Inherited IRA - CARES Act allows repayment of 2020 distributions

Great, this sounds perfect!

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