topic Re: 1099-R in Retirement tax questions

1099-R

hbaincdb — Wed, 03 Feb 2021 12:58:56 GMT

In April 2020 as per CARES act, I rolled my 2020 RMD distribution back to my IRA. On this RMD I already paid taxes.

Now I received the 1099-R for 2020 showing in box "2a Taxable amount" the total RMD I rolled back. As a result, TurboTax sees my rolled back RMD as income and calculates the taxes I have to pay again (since I already paid them earlier).

Does anyone have an idea how to make TurboTax not to see the rolled back RMD as taxable income.

I have form 5498 that show the RMD rollover but I don't know how to incorporate it to TurboTax.

Thanks for your help

Re: 1099-R

DanaB27 — Wed, 03 Feb 2021 13:13:44 GMT

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” and enter your 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.

RMDs were waived for 2020. 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 renter the 1099-R form.

Please be aware that if you didn't pay back the taxes withheld with the return of the distribution then that portion will be still included in your taxable income. But you will see the credit of the taxes paid on line 25b of Form 1040.

You can verify your entry by looking at your Form 1040 line 4 or 5:

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: 1099-R

hbaincdb — Thu, 04 Feb 2021 00:26:28 GMT

Thank you,

I modify the 1099-R I received from my IRA and changed box 2a to 0, I also changed box 7 from 7 to 8. That fixed the issue with TurboTax, but I'm worried IRS may flag it since the 1099-R was modified by me.

BTW I use TurboTax for Windows.

Re: 1099-R

Jaavenor — Sat, 06 Feb 2021 15:29:36 GMT

I have the same scenario - however when I push the link "jump to 1099R" It takes me to my IRA - there is no way to proceed with steps 4, 5 and 6. What am I doing wrong? Thank you.

Re: 1099-R

DanaB27 — Sat, 06 Feb 2021 16:23:22 GMT

Please try these steps to get to the 1099-R entry section if the "jump" function doesn't work for you:

Login to your TurboTax Account
Click "Federal" from the left side of your screen
Scroll down and click "Start" next to "IRA, 401(k), Pension Plan Withdrawals (1099-R)"
Enter your 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.

@Jaavenor

Re: 1099-R

Jaavenor — Sat, 06 Feb 2021 17:31:45 GMT

Thanks for the suggestion. Regretfully clicking on Federal takes me to the same place as the "Jump to 1099-R" - a listing of all my 1099R's. I tried deleting all prior 1099R's and entering by "jump to 1099-R" and later by clicking on "Federal" per your suggestion. I deleted all other 1099R's hoping that would fool the system into thinking I was entering a 1099 R for the first time - but unfortunately none of the questions appeared "How much was the RMD, etc., etc. I did a clear and start over of the return - that did not work. Earlier today I asked for the on-screen help and provided all of what I was trying to do via copy and paste of the original post above. That person did not have a clue - kept delaying while apparently trying to get help - then ultimately disappeared entirely. I'm at wits end.

Re: 1099-R

hbaincdb — Sat, 06 Feb 2021 20:50:48 GMT

I found this in IRS publication 1040 instructions - Page 25

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

“Also enter “Rollover” next to line 4b. If the total distribution was rolled over”

That means that if the entire RMD was Rolled over back to IRA, Form 1040 Line 4b should be changed to 0 and the space next to Line 4b should be marked “Rollover”. Line 4a should remain unchanged.

The problem is that TurboTax does not allow me to write "Rollover" in the space next to Line 4b

How can this be fixed?

Thanks

Re: 1099-R

Jaavenor 1 — Sat, 06 Feb 2021 21:51:27 GMT

I resolved my problem. After filling in all the info from my received 1099R hit the continue button - you'll see quite a few presumably not applicable questions. On the third page you see the heading "How much was The $------ was a RMD? Select "None of this withdrawal was a RMD" Hit Continue and on the next page select yes I rolled over $-------- to another IRA account or the same account. Hit continue and vola - it says you don't owe any taxes on your rollover. I've not done this yet but you can verify by (1) clicking on "tools" in the left menu, (2) click "Tools", (3) click "View Tax Summary" in the tool center window and (4) click on "Preview my 1040" on the left. You can verify the above entry on your form 1040 line 4 or 5.

Re: 1099-R

hbaincdb — Sun, 07 Feb 2021 12:33:31 GMT

This solution works on the Online TurboTax. It does not work on TurboTax for Windows

Re: 1099-R

SamS1 — Sun, 07 Feb 2021 21:35:46 GMT

In TurboTax Desktop, go to Forms Mode by clicking on the Forms link in the upper right hand corner of the screen. Then click on the 1099R form you are working on in the left margin. As you scroll down the 1099R, you will see the RMD questions and rollover questions. Keep scrolling down the screen and you will see the rollover questions. When completed, click on Step by Step in the upper right hand corner to get back to the interview forms.

The Care Act excluded required minimum distributions form needing to be taken in 2020. You had an option to roll an RMD distribution back into your IRA.