CARES Act - returning RMD

[macuser_22]

States do not have a RMD requirement at.    The 5498 is sent to the IRS by the financial institution.  You only get a copy of it for your information.    It does not go on a tax return.

[taxman_44]

So...my state return still shows that I took a distribution and paid taxes. How do I indicate that I returned the distribution, and still paid the taxes...since the 5498 only applies to the federal return which is sent to the IRS by my financial institution?

[macuser_22]

Did you have tax withheld?   If you did, did you replace the tax with other funds so that the entire 1099-R box 1 amount was rolled over? 

If not, then if less than the box 1 amount was rolled over then that will be taxable income for both Federal and state - the tax withheld is part of the distribution.

[wrgreeley]

I have same situation: took RMD add rolled back. I followed instructions to search "1099-R", however jump to 1099-R was not an option. I am using Turbotax Premiere.

[DawnC]

Make sure you are all the way inside of your return as the search feature will not from the Tax Home page.   When you get to the 1099-R, do not say that the distribution was an RMD, otherwise, you won't get the rollover questions since RMDs are not allowed to be rolled over.    Say it was not an RMD and then you will be given the option to say you returned the money.  Since RMDs were waived for 2020, you should not indicate your payment was for an RMD, even though that is what the intent was.    @wrgreeley

[wrgreeley]

I found more information and got it entered correctly.

[UncleSamPayer]

I have TurboTax Premier as well and it worked perfectly the first time I tried it.  I got the same screens as macuser_22 posted on page 2.  From what others are saying, if you did it wrong, you need to delete your 1099-R otherwise you won't get the questions asked.  Go to the View>forms menu and select the proper 1099-R.  Then select forms>delete form 1099-R xxxxx.  Now that it has been removed, go back to the interview and answer the questions per macuser_22.  You will even be asked if you are trying to return this RMD per the CARES Act.

[SAMTT1942]

I am having same problem on returning funds to my IRA, under the Cares act.  How can my gross RMD be adjusted to reflect the amount returned?

[DianeW777]

You are correct. Answer the RMD question that "None of this distribution was a RMD",  because is was not - there was no RMD.  

Then you should get the screen that allows you to rollover (roll it back). Be sure you meet the timeframe requirement for putting the money back.

• Waiver of RMD for 2020

[Trygve]

A rep "SAID" they would fix this by March 11!!!

It is unbelievable that they wouldn't warn the customers in similar situations

[macuser_22]

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@Trygve wrote:

A rep "SAID" they would fix this by March 11!!!

It is unbelievable that they wouldn't warn the customers in similar situations

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There is nothing to fix - it is working properly.

RMD rollovers are not permitted, but in 2020 it was NOT a RMD (if it was a IRA or defined contribution plan) so you must say that you did not take a RMD.

[Trygve]

You are mistaken. There were RMDs in 2020

But they could be reversed (rollover) prior to 8/31/2020. After that it’s taxable

If you say its not a RMD then it’s a taxable transaction 

Again Turbo admitted their flaw

Additionally the IRS matches 1099Rs to returns eventually. A discrepancy will create a notification. This is done automatically 

[Trygve]

The INHERITED software is not working. The regular RMDs are

[macuser_22]

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@Trygve wrote:

You are mistaken. There were RMDs in 2020

But they could be reversed (rollover) prior to 8/31/2020. After that it’s taxable

If you say its not a RMD then it’s a taxable transaction 

Again Turbo admitted their flaw

Additionally the IRS matches 1099Rs to returns eventually. A discrepancy will create a notification. This is done automatically 

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You misunderstand.    ALL Traditional IRA distributions are taxable whether is is a RMD or not.

Rolling a Traditional IRA over (putting the money back) makes it not taxable because you did not keep the money.

RMD's are not allowed to be rolled over under most circumstances, however §2203 of the CARES Act was a temporary waiver of the RMD for certain retirement plans for the 2020 tax year.   And stated that the requirement (for RMD's) shall not apply for the 2020 calendar  year.

Therefore any money distributed from an IRA in 2020 could not be a RMD if the RMD requirement did not exist.

Simply say the distribution was NOT a RMD and then you will get the screen to roll it back.

[macuser_22]

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@Trygve wrote:

The INHERITED software is not working. The regular RMDs are

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Say it was not inherited.  The only purpose of that question is to prevent rollover of inherited IRA's that normally is not allowed.  Nothing about that or the RMD question goes on a tax return at all.