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charjimmy
New Member

What is the required minimum distribution?

i think you have my total amount earned incorrect,
5 Replies
npierson7
Level 1

What is the required minimum distribution?

A required minimum distribution (RMD) is the amount of money that must be withdrawn from an employer-sponsored retirement plan, traditional IRA, SEP, or SIMPLE individual retirement account (IRA) by owners and qualified retirement plan participants of retirement age

The Secure Act made major changes to the RMD rules. If you reached the age of 70½ in 2019 the prior rule applies, and you must take your first RMD by April 1, 2020. If you reach age 70 ½ in 2020 or later you must take your first RMD by April 1 of the year after you reach 72.

The CARES Act waives required minimum distributions during 2020 for IRAs and retirement plans, including beneficiaries with inherited accounts.

sgkiurtz
New Member

What is the required minimum distribution?

I took the RMD for 2019 and only 10 months for 2020 on the advice of my financial planner.  how to I report the amount I took?  do I answer that I took it all or only a portion.  Is the portion I did  not take taible?

DianeW777
Employee Tax Expert

What is the required minimum distribution?

You did not take all, only a portion. You will not be taxed on the amount you did not take.

 

The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, waives required minimum distributions during 2020 for IRAs and retirement plans, including beneficiaries with inherited accounts. IRS Seniors Not Required to Take RMD

 

The CARES Act enabled any taxpayer with an RMD due in 2020 from a defined-contribution retirement plan, including a 401(k) or 403(b) plan, or an IRA, to skip those RMDs this year. This includes anyone who turned age 70 1/2 in 2019 and would have had to take the first RMD by April 1, 2020. This waiver does not apply to defined-benefit plans.

 

The portion you did not take will not be taxable, however the amounts you did receive, if they were not rolled over, will be taxable.

Jeff44
New Member

What is the required minimum distribution?

This answer provides the details of The Secure Act that changed rules for the Required Minimum Distribution.

 

However, as I work on my IRA reporting, I see that TurboTax is trying to make me report on a RMD that did not take place due to the changes in tax law under the Secure Act.

 

TurboTax needs to update the treatment of RMD's for 2020!

Thanks for your attention to this change.

Opus 17
Level 15

What is the required minimum distribution?


@Jeff44 wrote:

This answer provides the details of The Secure Act that changed rules for the Required Minimum Distribution.

 

However, as I work on my IRA reporting, I see that TurboTax is trying to make me report on a RMD that did not take place due to the changes in tax law under the Secure Act.

 

TurboTax needs to update the treatment of RMD's for 2020!

Thanks for your attention to this change.


Just answer "no".  Since no RMD was required, you did not have to take one, so just answer "no".  

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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