RMD Distribution from Prior Year

Forum|Forum|6 years ago
March 30, 2020
6 replies
29 views

I received part of 2018 IRA distribution in 2019 and it was included in 2019 1099-R gross distribution and taxable amount. How do I avoid including the 2018 distribution in 2019 income?

MarilynG

Level 15

If the 2018 distribution is reported on a 2019 1099-R, (and you received the funds in 2019), you will need to report it on your 2019 return.

Click this link for more info on 2018 RMD Reported in 2019.

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dmertz

Level 15

If you somehow reported this income on your 2018 tax return, that was a mistake and you need to amend your 2018 tax return.

Nabors711Author

Level 2

I did include it in 2018 income because the IRS was going to charge a 50% penalty. I discovered the 2018 RMD distribution shortage in February 2019 as I was filing my return. I included it in my 2018 return and the IRS waived the penalty.

The problem is that I got the distribution in 2019 and the investment company included the 2018 amount in my 2019 1099-R.

In Turbo Tax, I seem to have 2 choices: (1.) Put a reduced amount in the blocks 1 and 2 in the Turbo Tax 1099-R entry. or (2.) Match the 1099-B block 1 entry in Turbo Tax but reduce the block 2 entry by the amount I included in income for 2018 and check the box that indicates that I rolled it back into the same IRA.

Which do you suggest?