Repayment of RMD Distribution - How to file?

[bobweissman]

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@bobweissman wrote:

What's happening in my flow is that I am not seeing the screen with "What did you do with the money from this payer?". It flows directly to the next screen "Was this withdrawal due to Covid-19?"

What have I done wrong?

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I think I found it. This is an Inherited IRA. TT skips the "What did you do with the money" screen. If I go back and tell TT it's not Inherited, I see that screen.

This smells like a bug.

[macuser_22]

What code is in box 7?  

And I left out one question  with my screenshots - The "Is this IRA Inherited?"  must be answered NO or that will block the rollover question because inherited IRA's are normally not eligible for rollover but can be for 2020 only.

[bobweissman]

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@macuser_22 wrote:

What code is in box 7?  

And I left out one question  with my screenshots - The "Is this IRA Inherited?"  must be answered NO or that will block the rollover question because inherited IRA's are normally not eligible for rollover but can be for 2020 only.

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Code is "4-Death" as it should be.

So I can work around this. But it's a TT defect because TT should know everything about 2020 special cases. And oddly, TT still asks when the person died even after I've gone back and said the IRA isn't inherited.

Thanks for the help.

[macuser_22]

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@bobweissman wrote:

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@macuser_22 wrote:

What code is in box 7?  

And I left out one question  with my screenshots - The "Is this IRA Inherited?"  must be answered NO or that will block the rollover question because inherited IRA's are normally not eligible for rollover but can be for 2020 only.

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Code is "4-Death" as it should be.

So I can work around this. But it's a TT defect because TT should know everything about 2020 special cases. And oddly, TT still asks when the person died even after I've gone back and said the IRA isn't inherited.

Thanks for the help.

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That was reported months ago but I doubt that they will make any change just for the remainder of 2020 tax season, since the workaround is to just say no and the only purpose of the question is to *prevent* rolling an inherited IRA over.

[bobweissman]

Granted the workaround is trivial, but first you have to know about it. I see I'm not the first or last to come here asking about it.

Changing the logic should be simple. I'll wager there's something like a

if (! ira.inherited) { AskWhereTheMoneyWent(); }

conditional in there which could be disabled for TY2020. And if I'm wrong and it would be not so easy to change the code, some text on the relevant step-by-step pages could instruct the user how to handle this. It would have saved me some head-on-keyboard bashing.

[macuser_22]

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@bobweissman wrote:

Granted the workaround is trivial, but first you have to know about it. I see I'm not the first or last to come here asking about it.

Changing the logic should be simple. I'll wager there's something like a

if (! ira.inherited) { AskWhereTheMoneyWent(); }

conditional in there which could be disabled for TY2020. And if I'm wrong and it would be not so easy to change the code, some text on the relevant step-by-step pages could instruct the user how to handle this. It would have saved me some head-on-keyboard bashing.

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I agree and reported it a long time ago but no reaction so far.

BTW - good to see you back "RJS".

[bobweissman]

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@macuser_22 wrote:
BTW - good to see you back "RJS".

Hey there. I haven't got the hang of this version of the TT forum, so I'm not around much. I find the navigation non-obvious, and I don't like sites where you get to the bottom of a list & have to "load more". 

[VolvoGirl]

Yeah that seems to be new.  It annoys me too.    If you want to see all the posts try this link and bookmark it

https://ttlc.intuit.com/community/forums/recentpostspage/node-id/category:7 

[STCR1]

There is no ? to answer  when completing the 1099-R  on what you did with the funds??

[VolvoGirl]

@STCR1   What code is in box 7 on the 1099R?  What did you do with the funds?  Did you put it back?  Try deleting the 1099R and re enter it.  

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 on 1040 line 25b.  

[STCR1]

I received 3 1099-Rs from my 401K plan. The $186867 amount has a G in box 7.

the $15682 has a 7 in box 7.

The $1740 amount has a 7 in box 7.

The rolled over amount to a IRA was 200000. $13132 was the RMD amount.

$11819 net after taxes.

Can I enter 3 1099-Rs in Turbo tax?

I also had $4290 installments in 2020.

[macuser_22]

Yes you can enter then all.

Code G is automatically a rollover.

Delete the 1099-R you entered and re-enter.

Answer the RMD question that "None of this distribution was a RMD" or "RMD not required" depending on the TurboTax version - because it was NOT a RMD, there were no 2020 RMD's.

If this is an inherited IRA then answer the "Is this IRA inherited" with NO. The purpose of that question is to PREVENT rolling an inherited IRA over, but is allowed for 2020 only.

Then you will get the screen to say it was "moved" and all rolled over.

Also check the box that this was NOT a COVID related distributions - it was a RMD that was returned.

That will put the 1099-R box 1 amount on the 1040 form line 4a with the word ROLLOVER next to it.

[STCR1]

Deleted  original 1099-R and entering 3 separate 1099s. So far it has not helped.

[STCR1]

 Code G. Still no ? on what I did with the funds.

[VolvoGirl]

Code G means direct transfer so it doesn't need to know anymore about that one.  It is not taxable unless you moved it to a ROTH account.   Did you say NO it wasn't a RMD on all of them?  And no RMD was required.   And then say you moved or rolled it over.