Reportiing a redeposit of part of an RMD

[JRJ9]

Solved:

Turbo Tax 2020 has this now covered.  Here is what I did in case someone else has the same question.

Gross IRA distribution from 1099-R goes in Wages & Income section.

Was this withdrawal an RMD for 2020  >   No

Yes – Moved the money to another retirement account (or returned it to the same retirement account).

Yes – Did a combination of rolling over, converting, or cashing the money.

Amount rolled over to another (or back to the same) retirement account – Enter redeposit amount.

When you finish your return, the net amount will appear on line 4b with notation Rollover.

[macuser_22]

@JRJ9 That is exactally what I said to do in my post to this thread 4 days ago when you first asked.

[JRJ9]

You are correct.  I just detailed out the steps to make it more clear.

[barryberkov]

Thank you.  It's good to have the steps docukmented.   However, this discussion highlights something that is an issue for me with TurboTax..  I mentioned in a prior post.  There doesn't seem to be a way to see what you did in a step-by-step process after the return is filed.   Therefore, I felt it was best to document in a statement, how any number such as the taxable portion of IRA distribution(s) is derived.   I haven't checked out the 2020 version to see if you can track if you are audited exactly how a redeposit (characterized as a rollover) is handled.

[JRJ9]

In Forms > 1040/1040SR Wks - Go down to line 4b, click on the “Explain” box.  This will open an Explanation Statement where you can explain what you did.  I do not believe this would be part of the online filing but it would give you the documentation you need should you be audited.  My explanation was:  I took a RMD for $XX,XXX on (date).  The CARES Act waived RMD’s for 2020.  IRS Notice 2020-51.  On (date), $XX,XXX was redeposited to the original IRA.  The net result was a distribution for $XX,XXX.

[barryberkov]

Yes, that is exactly what I have effectively been saying.

[204025459]

I dont see TT asking following when enter 1099-R information. Where I can I find it?

Was this withdrawal an RMD for 2020  >   No

Yes – Moved the money to another retirement account (or returned it to the same retirement account).

Yes – Did a combination of rolling over, converting, or cashing the money.

Amount rolled over to another (or back to the same) retirement account – Enter redeposit amount.

[barryberkov]

If you redeposited some or all of an RMD withdrawal, I believe you currently need to use step-by-step to enter the 1099.   As far as I know you cannot get the redeposit handled correctly by entering amounts directly on the 1099.  I hope this helps but I suggest 1) you read the other comments on this topic and 2) contact TT support.  In my case (2019) return, TT support did not give me a correct answer the first time I contacted them.  After a chat with an IRS support person, they told me to contact TT again and this time I got the correct answer.  Always make sure there is an explanatory statement included with your filing.

[204025459]

Please clarify when you say  you currently need to use step-by-step to enter the 1099.  

I simply fill in all the applicable Boxes for 1099-R on Turbo Tax. There is no provision to have a dialogue.

[VolvoGirl]

After you enter the 1099R you have to continue on and answer several questions about it.  Keep going to the end of that section.  

And If you edit or review a 1099R it does not keep your answers from before but resets them to the defaults. Then you have to go through and answer them all again.   So be sure to go all the way to the end of the 1099R section.  They are right unless you go back.

[barryberkov]

If you are using an online version of TT, I cannot help you because I don't know how it operates.  The desktop version defaults to a series of questions and that mode is called step-by-step.  If you have brought up a form, you can get back to the step-by-step  mode by clicking on the tools tab at the very top of the  TT window.

[keithsharp]

The law changed allowing me to forgo RMD, redepositing the entire amount. 

Accordingly, I CHECKED BOX B1 ON THE TT 1099R FORM. 

TurboTax did not respond.

How to proceed to get this erroneous entry off the face of my 1040 return?

[VolvoGirl]

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. 

[macuser_22]

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@keithsharp  wrote:

The law changed allowing me to forgo RMD, redepositing the entire amount. 

Accordingly, I CHECKED BOX B1 ON THE TT 1099R FORM. 

TurboTax did not respond.

How to proceed to get this erroneous entry off the face of my 1040 return?

---

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.

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

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

[VolvoGirl]

@keithsharp    What box did you check?  There is no box B1.  And you should not change anything on the 1099R.  Enternit exactly as shown.  Then you answer the follow up questions and say NO it is NOT an RMD.  And that you rolled it over even if you put it back into the same account.