IRA Rollover Due to unintended Required Minimum Withdrawal

I accidently withdrew the Required Minimum Distribution from my IRA twice in 2022. I noticed the problem a few days after the second withdrawal. I immediately deposited that withdrawal back into the IRA to satisfy the 60 rollover so it would not count. I received a Form 5498 that shows that rollover contribution. However, the Form 1099-R shows the full double withdrawal amount as taxable. TurboTax wants to consider that contribution as an excess and charge a 6% penalty. How to I get the Form 1099-R to reduce the taxable amount to not include the rollover I put back into the account?

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1 Best answer

Expert Alumni

Mar 13, 2023 10:26:40 AM

Please do not enter the return amount as an IRA contribution. Please delete the entry.

Please follow these steps to enter your 1099-R and rollover of the excess amount withdrawn:

Login to your TurboTax Account
Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R” and enter your 1099-R
Continue until "How much of the $XXXXX was a RMD?" screen and select "Only part of this distribution was a RMD" and enter the amount of RMD.
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)"
Continue answering the questions.

Please be aware the RMD cannot be rolled over only the excess can be rolled over.

Level 15

Mar 13, 2023 10:24:42 AM

Did you also enter the amount you put back under Deductions like a new contribution? Don't enter it there. Only enter the 1099R. It will ask you what you did with it. Pick you moved it to another account even if you put it back into the same account. Then you enter how much.