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Level 2
posted Feb 1, 2021 8:43:51 AM

IRA CONTRIBUTION

I began withdrawals from my IRA (RMD) in January 2020 and then learned I did not have to so I returned the full amount back to my IRA in excess of $6000.  I then contributed $7000 to my Roth.  Your software is telling me I have an excess contribution even though I have answered the question that the $6000 is a return of 2020 withdrawals.  Not sure what to do.

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1 Replies
Expert Alumni
Feb 1, 2021 9:08:53 AM

Do not enter the return of the RMD under "Contribution" under the "Deduction & Credit" section. You will enter the return when entering your 1099-R.

 

Please remove RMD contribution part ($6,000):

  1. Login to your TurboTax Account 
  2. Click "Federal" from the left side of your screen
  3. Click on “Deduction and Credits” tab on top
  4. Click "edit" next to "Traditional and Roth IRA Contributions"
  5. Remove the checkmark next to "Traditional IRA"
  6. Select "yes" to "Remove Traditional IRA Contributions?"

 

Please follow these steps to enter your 1099-R and RMD rollover:

  1. Login to your TurboTax Account 
  2. Click on the Search box on the top and type “1099-R”
  3. Click on “Jump to 1099-R”
  4. Continue until "How much was a RMD?" and select "none"
  5. Continue "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
  6. Continue answering the questions.

 

RMDs were waived for 2020.  You must indicate to TurboTax that none of the distribution was RMD. If you already enter the 1099-R as RMD and changing your answer to the RMD question doesn't work then you have to delete and renter the 1099-R form. 

 

 

You can verify your entry by looking at your Form 1040 line 4 or 5:

  1. Click on "Tax Tools" in the left menu
  2. Click "Tools"
  3. Click "View Tax Summary" in the Tool Center window
  4. Click on "Preview my 1040" on the left