topic Re: RMD in Get your taxes done using TurboTax

RMD

Dougabyte — Sun, 31 Jan 2021 18:17:26 GMT

When I put in the information for our RMDs for 2020 and it asks if we put the money back, I answer yes. Turbo Tax then comes back and says we don't to tax on the money this year which I already knew. But it still shows up as income when I am finish with the income section.

WHY

Re: RMD

DanaB27 — Sun, 31 Jan 2021 19:57:11 GMT

Please be aware that the whole distribution will show as income in TurboTax on the summary screen which shows gross income, not taxable income. To verify that the entry is correct please look at form 1040 line 4b/5b (taxable amount), it should state ROLLOVER next to it.

To preview Form 1040:

Click on "Tax Tools" in the left menu
Click "Tools"
Click "View Tax Summary" in the Tool Center window
Click on "Preview my 1040" on the left

Re: RMD

Dougabyte — Tue, 02 Feb 2021 23:55:32 GMT

You instructions for previewing the 1040 don't make any sense but when I do preview the 1040 the total amount of the distribution is showing as taxable income. There is no ROLLOVER next to line 4b

Re: RMD

SamS1 — Wed, 03 Feb 2021 00:33:16 GMT

Yes, RMDs were waived for 2020. The CARES Act provisions apply to most retirement plans, including traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, 457(b) plans, profit sharing plans and other defined contribution plans. The RMD suspension does not apply to qualified defined benefit plans.

If you took a RMD but returned it in time then follow these steps when entering your 1099-R:

Please follow these steps to enter your 1099-R and RMD rollover:

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.

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 have to delete and re-enter the 1099-R form