Repaid TSP contribution because COVID eliminatad 2020 RMD

[Jim Corey]

Form 1099 shows a taxable TSP distribution, but I repaid it.

I understand that should be treated as a "direct plan to plan transfer" in TURBO TAX. How do you do this?

[DanaB27]

Please follow these steps to enter your 1099-R and RMD rollover:

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.

RMDs were waived for 2020 and 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. 

You can verify your entry by looking at your Form 1040 line 4 or 5:

1. Click on "Tax Tools" in the left menu
2. Click "Tools"
3. Click "View Tax Summary" in the Tool Center window
4. Click on "Preview my 1040" on the left

[pken]

Federal Taxes were paid on the distribution.  When you get to the question about How Much Money was Actually Deposited - Do you say YES to the tax amount added?  Or no, didn't add the tax to the amount.

example.  Withdrew 5000.00 paid 100 in taxes.

The question is Did you deposit 100 from your own funds in addition to the 4900 received from the distribution

Do you answer: yes - added 100 to the 4900 (total 5000)

or

No didn't add.

Thank you.

[AmyC]

@pken When you put the money back into the plan, did you put back the tax that had been withheld or did you only put back the money you actually received?

For example:

You put back all $5,000 say yes.

If you only paid back $4,900 say No, you didn't.

[pken]

@AmyC Yes I put the tax back as well. 

[DawnC]

If you returned the full amount, including taxes withheld, then you would say yes, and enter the full amount you deposited ($5000).   Some people did not return the tax withheld when they returned their RMDs so in those situations, they still have a taxable distribution in the amount of the difference between what was distributed (includes taxes withheld) and the amount they returned to the account (did not include the withheld taxes).   @pken