topic Re: Reporting RMD for 2020 in Get your taxes done using TurboTax

Reporting RMD for 2020

FriendlyFreddie — Thu, 18 Feb 2021 16:43:18 GMT

I started withdrawing money from my IRA account as RMD in Jan 2020. In May2020, I suspended withdrawals as per the waiver allowed by the IRS. I did not put the withdrawn amount back into the IRA. In January 2021, I received a 1099-R that showed the correct amount withdrawn for Jan-Apr 2020. When I started answering questions in TurboTax Premier 2020 regarding this Retirement Account, it accepted the numbers, then on the "Tell Us More About This Retirement Plan Distribution" it asked me to choose among:

1. I received all the RMD for 2020

2. I did not receive all the RMD for 2020, and

3. I was not required to take an RMD for 2020.

When I answered with option #2, it started to tell me the IRS will penalize me for not taking the full RMD. What should my answer be if I only took advantage of the IRS waiver for part of the year?

Re: Reporting RMD for 2020

VolvoGirl — Thu, 18 Feb 2021 16:47:51 GMT

Check #3 the RMD WAS NOT REQUIRED.

Re: Reporting RMD for 2020

FriendlyFreddie — Thu, 18 Feb 2021 16:57:17 GMT

Thank you VolvoGirl for the very prompt, clear and useful response.

Re: Reporting RMD for 2020

rolandwildman2617 — Wed, 24 Feb 2021 21:22:20 GMT

Thanks Friendly Freddie for asking this question. I ran into the same problem. Thanks Volvo for the quick answer. I tried your answer but then began second guessing myself. Glad for the confirmation. I think TT needs to revise this section to account for the legal change to the distribution rules so it is VERY CLEAR what one is supposed to do. I am certain we are not the only ones out there who have run across this issue. Thanks again.

Re: Reporting RMD for 2020

BRIAN S1 — Sun, 21 Mar 2021 14:18:03 GMT

Thank you for answering this question. I'm sure that a lot of folks have this question this year. I agree also that TT should update the Software to help people answer it correctly.

Re: Reporting RMD for 2020

kar-heloc — Sat, 10 Apr 2021 18:30:24 GMT

Option 3 is not available for me to check in Turbox Tax 20. Why is this not an option