Why TurboTax asking if my IRA withdrawal is an RMD...
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Returning Member

Why TurboTax asking if my IRA withdrawal is an RMD with there is no 2020 RMD?

Above

4 Replies
Employee Tax Expert

Why TurboTax asking if my IRA withdrawal is an RMD with there is no 2020 RMD?

You weren't required to take one, but that doesn't mean you couldn't choose to take one anyway.

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Level 15

Why TurboTax asking if my IRA withdrawal is an RMD with there is no 2020 RMD?

The CARES act waived RMD's for most retirement plans, including most IRA's, employer plans and some others.   RMD's for defined benefit  plans, pensions paid periodically, and other SEPP (Substantially Equal Periodic Payment) distributions (including IRA's that have been converted to SEPP), and some others were still required on 2020 and were not waived but the CARES act.

 

The type of plan is not on a 1099-R so there is no way to tell from the 1099-R what type of plan you have and if a 2020 RMD is required or not, so TurboTax always asks the question for taxpayers over age 72 1/2.

 

If you are not sure of the type of plan and if a RMD was required, ask the plan administrator.

 

RMD's are not eligible for rollover.   If your retirement plan distribution was not subject to a 2020 RMD then answer the RMD question that "None of this distribution was a RMD", or "RMD not required" depending on the TurboTax version.  Then you should get a screen to indicate that it was rolled over.

 

 

 

 

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Returning Member

Why TurboTax asking if my IRA withdrawal is an RMD with there is no 2020 RMD?

Thanks.

 

But taking IRA distributions in 2020 doesn't make them RMD's  - unless I designate them as such, correct? 

Level 15

Why TurboTax asking if my IRA withdrawal is an RMD with there is no 2020 RMD?

IRA's had no 2020 RMD at all whether you had a distribution or not  it was NOT a RMD.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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