CARES Act - returning RMD

[ShelleyD]

I also dealt with an Inherited IRA. The only way to make it work is to DELETE the 1099-R you received and then put it back it. reenter it back in. This time state it was NOT an RMD. You should be able to just change it, but it doesn't work that way. Delete it and do it over and it works. Follow the directions on page 1 of this thread and you'll be good to go.

[ShelleyD]

The only way to make it work is to DELETE the 1099-R you received and then put it back it. reenter it back in. This time state it was NOT an RMD. You should be able to just change it, but it doesn't work that way. Delete it and do it over and it works. Follow the directions on page 1 of this thread and you'll be good to go.

[macuser_22]

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@ShelleyD wrote:

The only way to make it work is to DELETE the 1099-R you received and then put it back it. reenter it back in. This time state it was NOT an RMD. You should be able to just change it, but it doesn't work that way. Delete it and do it over and it works. Follow the directions on page 1 of this thread and you'll be good to go.

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That is true - deleting and re-enter is the only way to reset everything.

[idrobinson]

I agree with the other comment about the accuracy of this comment. I did followed the explanation exactly as stated and it worked like a charm. Goog job.

[chuck42]

Hi!  I finally managed to get my 1099-R in such that it is not an RMD, and it does show up as a Rollover with no taxable amount.  The remaining problem is that my broker reversed the entire amount, and my 1099-R shows Federal and State tax withheld.  I never had the money distributed to me, so Federal and State tax was not actually withheld.  Now TurboTax wants to give me the tax dollars back as a refund, but I don't want to accept them, since I don't think they're due to me.  How can I cancel out those withholdings?  Thank you.

[dmertz]

chuck42, if no taxes were actually withheld, you must obtain a corrected Form 1099-R from the broker.

However, are you sure that no taxes were withheld?  If the same broker also holds the non-retirement account into which the original distribution was deposited, perhaps the broker replaced the amount withheld for taxes using other money that was in the non-retirement account and the withholding was actually sent to the Treasury.

[chuck42]

Thank you!  I did go look at the non-retirement account, and I'm not seeing anything that could be it except a sale on the same day that's about $300 more than the total tax amount.  But I think I will check with the broker to be sure before I submit my tax return.  Thank you so much for the idea.

[jghofmann]

Thjis is great information, but I keep getting stuck after answering "No, none of this withdrawal was an RMD".  The next screen addresses whether it is a Covid 19 or disaster distribution.  It is not the one asking "what did I do with the money".  I deleted the 1099R twice and re did it and I still can't get to "what did I do with the money".

Any suggestions?

[dmertz]

jghofmann, what is the code in box 7 of the Form 1099-R provided by the payer?

Is the IRA/SEP/SIMPLE box marked?

[idrobinson]

After completing the entry of the 1099-R and answering Not an RMD, you should get a screen that asks if you transferred the money to Charity. If you answer No then you get asked What did you do with the Money. Select Moved the money to another retirement account and then answer Rolled over all of this money. (Assuming this is what you really did. In my case I had the taxes withheld but I returned all of the RMD to my IRA from an after tax account). The nest question is How much Money did you actually deposit. One of the answers that TurboTax gives you is: added $x (where X was the taxes withheld) to $Y (where Y was the net of the RMD) for a total of $Z (where Z was the total RMD withdrawn). The next screen then asked if I put this money  in a Health Savings Account, I answered No. The next question asked if the withdraw was due to COVID-19 or a qualified disaster distribution. I answered No. No more questions, that was it. If you do not see these questions, call TurboTax for Help.

[idrobinson]

After completing the entry of the 1099-R and answering Not an RMD, you should get a screen that asks if you transferred the money to Charity. If you answer No then you get asked What did you do with the Money. Select Moved the money to another retirement account and then answer Rolled over all of this money. (Assuming this is what you really did. In my case I had the taxes withheld but I returned all of the RMD to my IRA from an after tax account). The nest question is How much Money did you actually deposit. One of the answers that TurboTax gives you is: added $x (where X was the taxes withheld) to $Y (where Y was the net of the RMD) for a total of $Z (where Z was the total RMD withdrawn). The next screen then asked if I put this money  in a Health Savings Account, I answered No. The next question asked if the withdraw was due to COVID-19 or a qualified disaster distribution. I answered No. No more questions, that was it. If you do not see these questions, call TurboTax for Help.

[idrobinson]

This post always goes to the wrong message. Cannot correct it.

[macuser_22]

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@idrobinson wrote:

This post always goes to the wrong message. Cannot correct it.

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As dmertz asked - What code is in box 7 and is the IRA/SEP/SIMPLE box checked?

[TurboTaxRandell]

Thank you for the detailed screen shots.  I have deleted this 1099-R 3 times and re-entered the data according to your instructions, but I do not get the last screen shot asking what I did with the distribution.  I'm not sure what else to try at this point.  I tried calling TurboTax support and my call dropped after a few minutes.  I am using TurboTax Online on a PC.

[tehutchinsonjr]

Is your IRA inherited?  If so go back to the screen where TT asks if your IRA is inherited and deselect that check box (pretend it is NOT inherited). That will bring up the final screen asking what you did with the distribution.