IRA MRD taken and returned

Forum|Forum|5 years ago
March 8, 2021
5 replies
31 views

I took my MRD distribution then realized that it wasn't required this year because of Covid. I returned the money, reversing the transaction. This was done quickly, within two weeks. I received a 1099-R showing the full MRD (but ignoring the reversal) and a FIDELITY INVESTMENTS form 5498 showing the returned amount as "Rollover contributions". I have not yet found a path to enter these "rollover contributions" into Turbo-Tax. Please advise.

Best answer by macuser_22

@NAMKRAB41 wrote:

I followed your instructions, pressing continue after the 1099-R input, but did not get to the "Tell us if you moved the money" screen. How to get there?

Delete the 1099-R you entered and re-enter.

Answer the RMD question that "None of this distribution was a RMD" or"RMD not required" depending on the TurboTax version - because it was NOT a RMD, there were no 2020 RMD's.

Then you will get the screen to say it was "moved" and all rolled over.

That will put the 1099-R box 1 amount on the 1040 form line 4a with the word ROLLOVER next to it.

MinhT1

Level 15

The RMD that you repaid are considered as rollovers to the same account and is not taxed.

Enter your form 1099-R normally. After entering your form 1099-R, click Continue until you reach the screen Tell us if you moved the money through a rollover or conversion. Check the radio button which corresponds to your situation then click Continue and follow the interview. Enter the amount repaid as a rollover and it will be excluded from taxation. You will still have the credit for taxes withheld.

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NAMKRAB41Author

Level 2

I followed your instructions, pressing continue after the 1099-R input, but did not get to the "Tell us if you moved the money" screen. How to get there?

macuser_22

Answer

Alumni - Champ

@NAMKRAB41 wrote:

I followed your instructions, pressing continue after the 1099-R input, but did not get to the "Tell us if you moved the money" screen. How to get there?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**