topic I was unemployed in 2019 and withdrew 100K from my IRA to cover expenses. How do I report this money? Is it considered income? in Retirement tax questions

I was unemployed in 2019 and withdrew 100K from my IRA to cover expenses. How do I report this money? Is it considered income?

JO4 — Sat, 12 Sep 2020 02:44:04 GMT

I had no employment income in 2019 and instead paid my expenses from money I have inherited. The money is divided between three accounts: an IRA, a supplemental IRA, and an account with funds earmarked for the future purchase of a home. During the year, I took two withdrawals of 50K each. I’m assuming that I must report these on my 2019 return, but I’m not sure where in TT to enter them. Are the withdrawals considered income, etc.? Also, I separately took a mandatory minimum distribution from my IRA, which I transferred to my supplemental IRA account. Does the fact that I transferred the distribution to another account make any difference in terms of how I report it? Any help regarding these questions would be greatly appreciated.

Re: I was unemployed in 2019 and withdrew 100K from my IRA to cover expenses. How do I report this money? Is it considered income?

VolvoGirl — Sat, 12 Sep 2020 03:01:08 GMT

What is a supplemental IRA Account? You can not transfer a RMD required minimum distribution to another IRA. You have to take it out. You should have received a 1099R from each account you took a distribution.

The easiest way to get to the 1099-R entry screen is to simply search for 1099-R (upper- or lower-case, with or without the dash) in your TurboTax program and then click the "Jump to" link in the search results.

Enter a 1099R under

Federal Taxes on the left side

Wages & Income at the top

Then scroll way down to Retirement Plans and Social Security,

Then IRA, 401(k), Pension Plans (1099R) - click Start or Revisit

@dmertz

Re: I was unemployed in 2019 and withdrew 100K from my IRA to cover expenses. How do I report this money? Is it considered income?

macuser_22 — Sat, 12 Sep 2020 03:19:35 GMT

A RMD is not eligible to be rolled into any other tax deferred account. It can be put into a regular brokerage or savings account. Any RMD that was put into another IRA is an excess contribution to that IRA subject to penalties until removed.