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Upsetting
New Member

Program does not ask what I did with my RMD.

 
1 Best answer

Accepted Solutions
macuser_22
Level 15

Program does not ask what I did with my RMD.

Answered in comments.

**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.**

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7 Replies
MichaelL1
Level 15

Program does not ask what I did with my RMD.

Only question it should ask was it a Direct donation to charity.  Did you do this?
Upsetting
New Member

Program does not ask what I did with my RMD.

The "jump to" guidance seems to indicate that several questions will be asked... it doesn't. I made a direct rollover with my RMD and want to indicate that if it makes a tax difference.
macuser_22
Level 15

Program does not ask what I did with my RMD.

No part of a RMD is eligible to be rolled over which is why the question is not asked.

Only if you took a distribution that was in *excess* of the RMD could the *excess* be rolled over, but any part of a RMD that is put into any other tax deferred retirement account is an excess contribution to that account and subject to a reoccurring 6% per year penalty until removed.   

Putting the RMD into a taxable brokerage account is not a rollover.
**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.**
Upsetting
New Member

Program does not ask what I did with my RMD.

Thank you. Is the answer the same if the RMD is invested in a CA Tax Free Bond Fund?
macuser_22
Level 15

Program does not ask what I did with my RMD.

As long as the  CA Tax Free Bond Fund is not held withing a tax deferred retirement account such as another IRA and is just in a regular brokerage account, then that is not a rollover, it is simply investing the money.    A tax free bond is not a tax deferred retirement plan, it is simply an investment.
**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.**
Upsetting
New Member

Program does not ask what I did with my RMD.

Thanks again.
macuser_22
Level 15

Program does not ask what I did with my RMD.

Answered in comments.

**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.**

View solution in original post

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