Repayment of RMD Distribution - How to file?

[ebs0712]

I withdrew my normal RMD distribution from my IRA prior to learning that RMD's had been suspended via the CARES Act.  I repaid these amounts to the same IRA within the required time frame.  I just received my 1099-R from the investment company and it shows the full amount of my distribution prior to the repayment.  I also got a form 5498 from the same investment company showing a "Rollover Contribution" of the amount that I repaid.  The question is how do I input this into the program since my "real" taxable distribution for the year should be $0.00.

Thanks in advance.

Eric

[garyt1]

I have been looking for the same answer.

[garyt1 · Accepted solution]

I found this on the forum:

Because RMDs were waived for 2020, the distribution was not an RMD even if that was the original intent of the distribution.  After entering the Form 1099-R exactly as received, you must indicate that none of the distribution was RMD, then indicate that you moved the money to another retirement account (or returned it to the same account), that you rolled over the distribution and that you rolled over the entire distribution.  TurboTax will include the gross amount on Form 1040 line 4a or 5a but will exclude the entire amount from the taxable amount on line 4b or 5b and will include the word ROLLOVER next to the line.

I scrolled down to RMD on 1099-R and unchecked the "Entire gross is RMD and entered $0.00.  That worked to remove the tax on the RMD.

[ebs0712]

Thanks for hunting that down on the forum.

I found it easier to input the numbers on the 1099-R Form in the program rather then using Easy Step.  Some of the Easy Step questions were difficult to interpret (In my opinion).

The instructions worked and the net taxable distribution results in $0.00.

[coljediv]

I am trying to verify whether this works for a partial Rollover Distribution return.  In my case, I withdrew $48,000 from one IRA, and then prior to the end of summer deadline, I put $5,000 back in.  I got the same basic things on the institution forms:  $48k on a 1099-R and $5K on a 5498.  I'm trying to verify that my taxable income from that distribution is $43K and not $48k.

[DanaB27]

To verify that your taxable income from that distribution is $43K and not $48k please follow these steps to preview your 1040 form and look at 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

@coljediv

[ebs0712]

Partial Rollover will absolutely work.  Go to the 1099-R in the "Forms" part of the Program for the Investment Company (I did not use Easy Step).  Fill out the top part exactly as it was sent to you.  Part way down the form if this was a MRD put in the partial amount of the distribution ($43K in your case).  If its not a MRD skip this step and then scan down to line B2 and put in the amount of the rollover ($5K in your case) and it will calculate the correct taxable distribution.

[dickeyjj]

I re-payed my full RMD to my 401K.  If I treat this as a roll-over in Turbotax as recommended, will I get my taxes back?

[macuser_22]

If you replaced the box 4 withholding with other funds then the box 4 amount will be added to all other withholding and be added to your refund, if any.

[VolvoGirl]

Possibly.  If the withholding is more than the tax on your other income.  When you re-payed the RMD did you add the withholding back in also?  Otherwise the withholding becomes a distribution itself.

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).

[JB-F]

I am in your same situation; however, I cannot for the life of me figure out how to actually input the reality of the situation into TurboTax.  Is it possible for you to provide a more detailed explanation.

[ebs0712]

I did not use Easy Step for this process as I think the questions don't do the trick.  Go to the top of the page and select "Open a Form".  From the list which appears select 1099-R.  Fill out the top part of the 1099-R exactly as it was sent to you by your investment company.  Part way down the form you will see "RMD".  Check the box if it was all a RMD or if this was a partial amount of the distribution.  If it is not a MRD skip this step.   Scan down to page 2 and look for line B1 for a full rollover or B2 for a partial and put in the amount of the rollover from Form-5498.   The program will calculate the correct taxable distribution ($0.00 if it was a full rollover) and put "Rollover" on you 1040.  Hope that helps!

[JHHedgesWE]

I did just what you said and it worked. Filled out the 1099-R exactly as printed on the form, found page 2 and put a check in the box: 'entire distribution rolled over'. No taxable income. I completed the total rollover within the 60 day period.

Thank You. Jim

[stuchas]

thanx for the info.  Will TurboTax ask if there has been a rollover?  I am concerned about changing documents that have already been sent to the IRS;  the 1099R in this case

[VolvoGirl]

You don't change the 1099R.  You answer the follow up questions.

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. 

If you already entered 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.