IRA MRD taken and returned

[NAMKRAB41]

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.

[MinhT1]

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.

[NAMKRAB41]

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 · Accepted solution]

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@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?

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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.

[GBB1]

The fix below is not working.  I deleted the 1099-R as you suggest and reentered the information checking the button "none of this was a RMD".   I am still not getting the screen saying this was rolled over and TurboTax is STILL including it in income.   How does this get fixed?

[macuser_22]

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@GBB1 wrote:

The fix below is not working.  I deleted the 1099-R as you suggest and reentered the information checking the button "none of this was a RMD".   I am still not getting the screen saying this was rolled over and TurboTax is STILL including it in income.   How does this get fixed?

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It is income, but not taxable income.       Look at the 1040 line 4 that should have the "income" in line 4a and the taxable amount as zero on 4b with the word ROLLOVER next to it?