IRA/MRD

[RichP]

I am 77, and I took out money from my Rollover RTA in early 2020 and used the money for needed expenditures.  Why does Turbo Tax Deluxe ask questions about MRDs when there was no such requirement for 2020?  How should I report the amount which was about 1/2 of what my MRD would have been?  I tentatively reported it as have been withdrawn, but claimed that it was not as taken as portion an MRD.

[macuser_22]

Check the box that says that "None of this distribution was a RMD" because there was no 2020 RMD.

[jakcy]

Update:

The distribution was taken so the 1099-R  cannot be reissued. You should get a 2020 Form 5498-IRA (You get a 2020 form 5498 IRA only if you returned all or part of the distribution). The work around is that in completing the 1099R in Turbo Tax  instead of typing in the MRD withdrawal double click in the box and get a worksheet.  Fill in the withdrawal amount from the 1099R on first line. Then add the 5498-IRA info on line 2 as a negative number.  You can used the text lines to write why if you want a reminder to yourself. The 5498 IRA is not a form in TurboTax.

[macuser_22]

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@jakcy wrote:

Update:

The distribution was taken so the 1099-R  cannot be reissued. You should get a 2020 Form 5498-IRA. The work around is that in completing the 1099R in Turbo Tax  instead of typing in the MRD withdrawal double click in the box and get a worksheet.  Fill in the withdrawal amount from the 1099R on first line. Then add the 5498-IRA info on line 2 as a negative number.  You can used the text lines to write why if you want a reminder to yourself. The 5498 IRA is not a form in TurboTax.

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Absolutely not.    A 5498 does  not go on a tax return and changing the 1099-R box or 2a amount will guarantee an audit letter form the IRS.

There is nothing special about this, it simply gets entered the same way as any other rollover.

This is all there is to it - simple.

(The working on the screen is misleading because you cannot "tell about a RMD" that did not exist - just check the box as below.

[fanfare · Accepted solution]

TurboTax just choose not to reprogram that section for 2020 and then put it back again for next year.

When the current prompts will handle the situation.

TurboTax is well known for confusing prompts.