Where on the 1099-R do I find whether some of my RMD is withdrawn?

[LinaJ2020]

Due to Covid, RMD has been waived for 2020.  See details below.  Usually, you should see a code 7 in box 7 on your Form 1099-R.  If the distribution is for your RMD for the year, it will be treated as a normal distribution.  The code 7 will be marked in Box 7 on your Form 1099-R. 

Besides, it will also be reported on a Form 5498 "IRA Contribution Information" where box 11 and 12 will be checked .You are not required to report this form to the IRS. 

In the past, required Minimum Distributions (RMDs) are minimum amounts that a retirement plan account owner must draw out annually starting with the year that he or she reaches 72 (70 ½ if you reach 70 ½ before January 1, 2020), if later, the year in which he or she retires.  However, if the retirement plan is an IRA or the account owner is a 5% owner of the business subsidizing the retirement plan, the account holder must begin withdrawing the RMDs once he or she is age 72 (70 ½ if you reach 70 ½ before January 1, 2020), regardless of whether he or she is retired.  Due to the Covid, the CARES Act waives required minimum distributions (RMDs) during 2020 for IRAs and retirement plans, including for beneficiaries with inherited IRAs and accounts inherited in a retirement plan.  You're not required to withdraw RMDs for 2020 if you have been affected by the pandemic.  To learn more from the IRS, click here: RMDs waived

In TurboTax program, once you are in the 1099-R section, you will follow through the on-screen interview questions that will lead you to the RMD questions.  Here are the steps:

In TurboTax online,

1. Sign in to your account and select Pick up where you left off
2. From the upper right menu, select Search and type in 1099r and Enter
3. Select the Jump to 1099r
4. Follow prompts

[VolvoGirl]

The 1099R doesn't say that specifically.  What do you need to know?  Did you take out more than the RMD?  Or did you put it back into the account?  And by the way there was no RMD required for 2020 because of Covid-19.  So when it asks if it is the RMD say NO.

[stanpuza]

no idea of RMD issue im 76 now i assume yhis has been handled all ready by my financial institution still dont know which box to check ?

[macuser_22]

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@stanpuza wrote:

no idea of RMD issue im 76 now i assume yhis has been handled all ready by my financial institution still dont know which box to check ?

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For 2020 you check "None of this distribution was a RMD" because it was not - there was no 2020 RMD's.

Nothing about that question  goes on a tax return.   The ONLY reason for the question  is to determine  if the distribution was eligible for rollover.

[RChisholm]

Dry-running my taxes on Turbotax, I received a 1099-R for RMD distributions in early 2020.  I returned the full amount including federal tax to my  original IRA account with my custodian advisor, in early 2020 upon the establishment of the CARES Act.   When I go through Turbotax in that section, I check "rolled over to the original  account."  However, the distribution amount is still shown as a taxable amount on line 4a of the Form 1040, and does not indicate "rollover," increasing my federal taxes and adding to total income.  The easy solution was to simply change the distribution code on the 1099R to "G" rather than the original 7, normal distribution.   That solved everything.   But Code G is a "rollover" event, and not necessarily applicable to the CARES Act, but that is essentially what it is.  I know I cannot change the code, as I must copy exactly what the original 1099R reported.

Seems to me Turbotax should have a more clear question and answer logic flow to identify a CARES rollover, or we will be paying taxes on the "normal distribution," that we rolled back in to the original account.

[VolvoGirl]

Line 4a is for the gross amount.  The taxable amount is on 4b.  Did you mean 4b?

[MaryK4]

RMDs were waived for 2020. The CARES Act provisions apply to most retirement plans, including traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, 457(b) plans, profit sharing plans and other defined contribution plans. The RMD suspension does not apply to qualified defined benefit plans.

You must indicate to TurboTax that none of the distribution was RMD. If you already enter the 1099-R as RMD and changing your answer to the RMD question doesn't work then you have to delete and renter the 1099-R form. 

If you returned money then you can indicate this in TurboTax.

Please follow these steps to enter your 1099-R and RMD rollover (returned money):

@RChisholm

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R”
4. Continue until "How much was a RMD?" and select "none"
5. Continue "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
6. Continue answering the questions.

[macuser_22]

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@RChisholm wrote:

Dry-running my taxes on Turbotax, I received a 1099-R for RMD distributions in early 2020.  I returned the full amount including federal tax to my  original IRA account with my custodian advisor, in early 2020 upon the establishment of the CARES Act.   When I go through Turbotax in that section, I check "rolled over to the original  account."  However, the distribution amount is still shown as a taxable amount on line 4a of the Form 1040, and does not indicate "rollover," increasing my federal taxes and adding to total income.  The easy solution was to simply change the distribution code on the 1099R to "G" rather than the original 7, normal distribution.   That solved everything.   But Code G is a "rollover" event, and not necessarily applicable to the CARES Act, but that is essentially what it is.  I know I cannot change the code, as I must copy exactly what the original 1099R reported.

Seems to me Turbotax should have a more clear question and answer logic flow to identify a CARES rollover, or we will be paying taxes on the "normal distribution," that we rolled back in to the original account.

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A  Traditional IRA distribution can NEVER have a code "G".

Simply delete the 1099-R and re-enter and answer the RMD question "that none if this distributions was a RMD" and then indicate that it was rolled over.

[RChisholm]

Ok, when I check "this was not an RMD, then it works fine.   Thanks very much

[7033716549]

so do I have to report the amount on the form 5498  on line 12b

[macuser_22]

No.  Not on the 2020 tax return because the 2020 IRA  RMD did not exist by law.