topic What is the required minimum distribution? in Retirement tax questions

What is the required minimum distribution?

charjimmy — Sun, 07 Feb 2021 02:06:22 GMT

i think you have my total amount earned incorrect,

Re: What is the required minimum distribution?

npierson7 — Sun, 07 Feb 2021 02:28:55 GMT

A required minimum distribution (RMD) is the amount of money that must be withdrawn from an employer-sponsored retirement plan, traditional IRA, SEP, or SIMPLE individual retirement account (IRA) by owners and qualified retirement plan participants of retirement age

The Secure Act made major changes to the RMD rules. If you reached the age of 70½ in 2019 the prior rule applies, and you must take your first RMD by April 1, 2020. If you reach age 70 ½ in 2020 or later you must take your first RMD by April 1 of the year after you reach 72.

The CARES Act waives required minimum distributions during 2020 for IRAs and retirement plans, including beneficiaries with inherited accounts.

Re: What is the required minimum distribution?

sgkiurtz — Mon, 15 Feb 2021 20:51:10 GMT

I took the RMD for 2019 and only 10 months for 2020 on the advice of my financial planner. how to I report the amount I took? do I answer that I took it all or only a portion. Is the portion I did not take taible?

Re: What is the required minimum distribution?

DianeW777 — Mon, 15 Feb 2021 21:11:18 GMT

You did not take all, only a portion. You will not be taxed on the amount you did not take.

The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, waives required minimum distributions during 2020 for IRAs and retirement plans, including beneficiaries with inherited accounts. IRS Seniors Not Required to Take RMD

The CARES Act enabled any taxpayer with an RMD due in 2020 from a defined-contribution retirement plan, including a 401(k) or 403(b) plan, or an IRA, to skip those RMDs this year. This includes anyone who turned age 70 1/2 in 2019 and would have had to take the first RMD by April 1, 2020. This waiver does not apply to defined-benefit plans.

The portion you did not take will not be taxable, however the amounts you did receive, if they were not rolled over, will be taxable.

Re: What is the required minimum distribution?

Jeff44 — Fri, 09 Apr 2021 15:13:33 GMT

This answer provides the details of The Secure Act that changed rules for the Required Minimum Distribution.

However, as I work on my IRA reporting, I see that TurboTax is trying to make me report on a RMD that did not take place due to the changes in tax law under the Secure Act.

TurboTax needs to update the treatment of RMD's for 2020!

Thanks for your attention to this change.

Re: What is the required minimum distribution?

Opus 17 — Fri, 09 Apr 2021 15:22:13 GMT

@Jeff44 wrote:

This answer provides the details of The Secure Act that changed rules for the Required Minimum Distribution.

However, as I work on my IRA reporting, I see that TurboTax is trying to make me report on a RMD that did not take place due to the changes in tax law under the Secure Act.

TurboTax needs to update the treatment of RMD's for 2020!

Thanks for your attention to this change.

Just answer "no". Since no RMD was required, you did not have to take one, so just answer "no".

Re: What is the required minimum distribution?

vine1226 — Thu, 16 Feb 2023 21:05:19 GMT

How do I report a charitable contribution taken from my RMD?

Re: What is the required minimum distribution?

DawnC — Thu, 16 Feb 2023 21:21:39 GMT

After you enter your 1099-R, you will be asked some follow-up questions. One of them will be about transfers to charity or qualified charitable contributions (QCD). You can indicate if some or all of your distribution was to a qualified charity. Choose the response for your situation and TurboTax will include the full amount of your distribution on line 4a and any taxable portion on line 4b and will enter ''QCD'' next to it.

A QCD can satisfy all or part of your required minimum distribution (RMD) for the year. You can make a qualified charitable distribution for more than the required minimum distribution, but you cannot apply any excess to a future year's required minimum distribution. @vine1226

How to enter a 1099-R?