topic Re: RMD distribution in Retirement tax questions

RMD distribution

danshan1 — Sun, 31 Jan 2021 16:36:19 GMT

Took taxable RMD dist in 2020 and did not return it--thus taxable. Checked box for "YES" where requested re taxability. TT continues to erase "YES" box and will not move to "Taxable Amount" on 1040. ???

Re: RMD distribution

SamS1 — Sun, 31 Jan 2021 20:18:29 GMT

Interesting. Lets start with basic stuff. You need to be over 70 1/2 for the RMD rules to apply. Next, lets take a look at your return. To view only your 1040 form: In the left margin Select Tax Tools then Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu. You will be able to see your 1040 and particularly lines 4b and 5b for your taxable retirement distributions. Click Back to go back to your TurboTax input screens.

Next let walk through the input. In the 1099R input, Box 1 and box 2a should have amounts entered. There also should be a 7 in box 7. Next on the Uncommon situations should be None. Next screen indicate all distribution is RMD. Next screen, indicate did not rollover or convert. That should take you back to the summary then continue. Next are the questions on nondeductible contributions to IRA. This should be No.

After going through the screens go back to review a summary of the 1040 through the Tax Tools to see if your distributions are taxable on line 4b or 5a.

Here is a link on previewing your 1040

Re: RMD distribution

danshan1 — Wed, 03 Feb 2021 18:39:05 GMT

Thanks for the reply. It appears that TT does NOT update taxable portion of IRA distributions on 1040 until Form 8606 is completed, which is much later in the process. That was my issue, not the 1099R data entry.

Re: RMD distribution

SamS1 — Wed, 03 Feb 2021 19:17:53 GMT

Great! Glad to here you resolved it after the 8606 questions in TurboTax.