RMD reinvested in brokerage account

[twerpgraphics]

My father took his RMD and reinvested it in his brokerage account. He never received any cash or check for this money. How do I enter this in turbo tax? His 1099-R lists the gross distribution and taxable amount as the same and the distribution code is 7 and IRA/SEP/SIMPLE is checked. No where in the 1099-R listing in Turbo Tax does it say anything about reinvested money that was not taken by my father as cash or check.

[TomD8 · Accepted solution]

The fact that he reinvested his RMD into a normal brokerage account has no effect on its taxability.

You may be confusing this with a "rollover".  A rollover occurs when you withdraw cash or other assets from one eligible retirement plan and contribute all or part of it, within 60 days, to another eligible retirement plan.  You cannot "rollover" an RMD.

[twerpgraphics · Accepted solution]

Thank you for the information.