topic RMD and liquidated IRA in Retirement tax questions

RMD and liquidated IRA

cab0729 — Thu, 04 Mar 2021 21:11:31 GMT

Liquidated IRA in 2020 - turbo tax is asking what portion is RMD - RMD was not required due to CareAct. RMD was taken in 2019. How do I calculate a RMD for 2020??

Re: RMD and liquidated IRA

VolvoGirl — Thu, 04 Mar 2021 21:13:01 GMT

Since there is no RMD required for 2020, after you enter the 1099R say it was NOT an RMD and then that you rolled it over (even if back into the same account). Was any withholding taken out? If it was then did you replace the withholding with your own money? Otherwise the withholding will be a taxable distribution itself. You will get credit for the withholding taken out on 1040 line 25b.

If you already entered 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.

Re: RMD and liquidated IRA

fanfare — Thu, 04 Mar 2021 21:56:55 GMT

OP did not do a Rollover,

so the entire amount is taxed, with a penalty if taken before age 59 1/2.