Rollover of RMD

Forum|Forum|5 years ago
February 19, 2021
4 replies
41 views

I received about 40,000 as an RMD from a 401K in January 2020. When the rules changed, I rolled over 32,000 into a new IRA because the money couldn't be returned to the 401K (and I knew I would have to show the 8,000 as an RMD). I paid taxes of about 10K to the IRS (plus what I payed my state). The 1099r shows the full amount of the distribution. How do I report this - do I use the 8,000 amount as the RMD? I can't get a revised 1099R because the two entities are different.

Best answer by MinhT1

In TurboTax , you should indicate that you did a roll over for $32,000 of the 401(k) distribution.

Enter your form 1099-R by following these steps:

In TurboTax, open your tax return
Click on Federal in the left-hand column, then on Wages & Income on top of the screen
Scroll down to All Income, locate the section Retirement Plans and Social Security and click on Show more
Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).

After entering your form 1099-R, click Continue until you reach the screen Tell us if you moved the money through a rollover or conversion. Check the radio button which corresponds to your situation then click Continue and follow the interview.

The $32,000 rollover will be excluded from taxation. You will pay tax on the balance of $8,000. The $10,000 tax withheld reported in box 4 of the form 1099-R will serve as a credit against your tax liability.

MinhT1Answer

Alumni - Intuit

In TurboTax , you should indicate that you did a roll over for $32,000 of the 401(k) distribution.

Enter your form 1099-R by following these steps:

In TurboTax, open your tax return
Click on Federal in the left-hand column, then on Wages & Income on top of the screen
Scroll down to All Income, locate the section Retirement Plans and Social Security and click on Show more
Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).