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RHM1
New Member

My H&B software is taxing my RMD in 2020 that I rolled over back into my IRA account after the Cares Act was passed. What do I do ?

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4 Replies
DanaB27
Expert Alumni

My H&B software is taxing my RMD in 2020 that I rolled over back into my IRA account after the Cares Act was passed. What do I do ?

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

  1. Open you return in TurboTax 
  2. Click on the Search magnifying glass on the right top and type “1099-R” in the box
  3. Click on “Jump to 1099-R”
  4. Continue until "About this Retirement Account. / Was this withdrawal an RMD for 2020?" and select "No, none"
  5. Continue "What did you do with this money from this payer?" and select "I moved the money to another retirement account (or returned it to the same account" the select what applies to you.
  6. Continue answering the questions.

 

RMDs were waived for 2020 and 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 switching to Form mode (click on Forms at the top right). Look at your Form 1040 line 4 or 5.

 

 

 

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VolvoGirl
Level 15

My H&B software is taxing my RMD in 2020 that I rolled over back into my IRA account after the Cares Act was passed. What do I do ?

Since there is no RMD required for 2020,  after you enter the 1099R say it was NOT an RMD and then that you rolled it over (even if back into the same account).  Was any withholding taken out?  If it was then did you replace the withholding with your own money?  Otherwise the withholding will be a taxable distribution itself. You will get credit for the withholding taken out. 

hullian
Level 3

My H&B software is taxing my RMD in 2020 that I rolled over back into my IRA account after the Cares Act was passed. What do I do ?

I also had this problem; I did as you said, except I only PARTIALLY rolled over my RMD's back. The Form 1099-R in Turbotax is correctly showing the amount that was rolled over. But the 1040 form is saying that my taxable amount from the distribution is ZERO. It's not picking up the rollover amount from the 1099-R. If I try to override the taxable amount on the 1040 to show the partial rollover, it doesn't give me that option.

I actually called one of the very nice Turbotax CPA's, and she said that the IRS hasn't updated these forms yet; she said that it should be corrected by tax submission time, February 12. Does that sound right?

AmyC
Expert Alumni

My H&B software is taxing my RMD in 2020 that I rolled over back into my IRA account after the Cares Act was passed. What do I do ?

Yes. The IRS does not open until February 12. They work on forms from most common to least common. See Federal form availability for expected release dates. Once released, we work to incorporate them quickly. To terrify you even further, not all forms will be ready even then.

 

The software does not get updated until the finalized version is released. You may see some tax calculations change when the forms are correct.

 

The IRS actually has a great website with complete details on all things retirement, see the IRS Retirement Center.

 

@hullian

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