I took $430,00 out of a Schwab IRA over the course of 2020. Before the CARES act was passed, I was notified that my RMD's from the Schwab IRA and another Vanguard IRA would be a total of $112,975.41.
My 1099-R from Schwab shows the $430,00 in box #1 and box #2A. The IRA was not inherited.
The next TurboTax question asks, "Was this withdrawal an RMD for 2020?" Yes or No? There was even a note about the CARES Act and that all RMD's had been suspended.
How do I answer?
You would answer No.
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 might have to delete and renter the 1099-R form.
Please follow these steps to enter your 1099-R:
- Login to your TurboTax Account
- Click on the Search box on the top and type “1099-R”
- Click on “Jump to 1099-R”
- Continue until "How much was a RMD?" and select "none"
- 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)"
- Continue answering the questions.
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