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Since the RMD rule is suspended, RMDs taken in 2020 are considered eligible for rollover. Therefore, RMDs can be rolled over to another IRA, another qualified retirement plan, or returned to the original plan by August 31, to avoid paying taxes on that distribution. Here is how to report this in Turbo Tax.
I took out the full RMD amount in January. In August I returned a portion to the traditional IRA. In December i took part of that returned amount from the traditional IRA and rolled it into a Roth IRA. As a result of all this I received a 1099-R that includes the total RMD amount that I originally took plus the amount that I rolled into the Roth IRA. I also received 2 Form 5498's. One shows the amount that I returned to the traditional IRA on Line 2. The other 5498 shows the amount that I transferred to the Roth IRA on Line 3. How do I enter all this in TurboTax so that Lines 4a and 4b on Form 1040 are correct? Thank you.
PS - Where will I find your response to my question?
By adding your user name here you should see the answer more quickly @mollyjack8478.
1. RMD full distribution in January and returned in August: Delete the 1099-R and re-enter. 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).
2. Distribution from IRA rolled into a Roth IRA in December: My suggestion is to add a second 1099R with the same payer information, the second one for the this distribution.
Enter the Conversion from a Traditional IRA to a Roth IRA
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