Rollover IRA from excess RMD distribution

2 replies
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Can I rollover $2700 of excess 2023 RMD distribution back to my IRA account.

I understand you can do it within 60 days after distribution.

If doable, how is that reported in my 2023 Tax return. Thank you

IRA

D

dmertzAnswer

Level 15

I assume that this is not an inherited IRA. If it does not result in a violation of the one-rollover-per-12-months limitation, you can by the 60th day after you receive the distribution rollover the amount in excess of your RMD. When you enter the Form 1099-R into TurboTax you'll indicate the amount of the distribution that was RMD, indicate that you moved the money to another retirement account or back to the same account, indicate that you did a combination of rolling over, converting and cashing out, then indicate the amount rolled over.

In the event that a rollover would violation the one-rollover-per-12-months limitation, you could convert to Roth the amount in excess of your RMD. This would not avoid current taxation but earnings in the Roth IRA would be tax free once the 5-year qualification period is met.

A

Anonymous_

Level 15

No text available

D

dmertzAnswer

Level 15

I assume that this is not an inherited IRA. If it does not result in a violation of the one-rollover-per-12-months limitation, you can by the 60th day after you receive the distribution rollover the amount in excess of your RMD. When you enter the Form 1099-R into TurboTax you'll indicate the amount of the distribution that was RMD, indicate that you moved the money to another retirement account or back to the same account, indicate that you did a combination of rolling over, converting and cashing out, then indicate the amount rolled over.

In the event that a rollover would violation the one-rollover-per-12-months limitation, you could convert to Roth the amount in excess of your RMD. This would not avoid current taxation but earnings in the Roth IRA would be tax free once the 5-year qualification period is met.