topic Re: RMD repayment in Retirement tax questions

RMD repayment

pFcF35-O — Sun, 07 Mar 2021 23:23:41 GMT

I took an RMD from an inherited IRA in April and repaid it to the original IRA in July. In the income section in TurboTax, I answered "No" to the question about the withdrawal being an RMD. I'm getting no follow-up questions about rollovers, and the program says not to include rollovers in IRA contributions. Where do I deal with the repayment so I can get this distribution out of income?

Re: RMD repayment

ColeenD3 — Sun, 07 Mar 2021 23:40:47 GMT

Any RMD received in 2020 is no longer required and can be rolled back within 60 days of the distribution as long as the distribution would have been eligible for rollover had it not been an RMD.

Your rollover was beyond the 60 day time period.

Re: RMD repayment

pFcF35-O — Mon, 08 Mar 2021 00:17:38 GMT

Actually, IRS Notice 2020-51 references an extension of the 60 day rollover period to Aug. 31, 2020, and mine was completed before that. My real question is about the software which I think should be asking questions about what I did with the distribution and giving me the option to indicate it was rolled over. That's not happening, so even though Turbo Tax says not to deal with a rollover as a contribution, I can't figure out how else to remove it from income.

Re: RMD repayment

dmertz — Mon, 08 Mar 2021 00:26:03 GMT

It seems that you are using online TurboTax which does not presently support reporting a rollover of a distribution paid to a non-spouse beneficiary. As long as the entire distribution was rolled over, when TurboTax asks, indicate that the distribution was not from an inherited IRA. TurboTax will then present the questions that ask what you did with the money.

Re: RMD repayment

PattiF — Mon, 08 Mar 2021 00:29:11 GMT

Here are instructions that should help.

Please do not enter the returned amount as a contribution under the Deduction and Credit section. Please delete these entries:

Login to your TurboTax Account
Click "Federal" from the left side of your screen
Click on “Deduction and Credits” tab on top
Click "edit" next to "Traditional and Roth IRA Contributions"
Remove the checkmark next to "Traditional IRA"
Select "yes" to "Remove Traditional IRA Contributions?"

Please follow these steps to enter your 1099-R and the return of RMD:

Login to your TurboTax Account
Click on the Search box on the top and type “1099-R”
Click on “Jump to 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 and you must indicate to TurboTax that none of the distribution was RMD. If you already enter the 1099-R as RMD then you must delete and reenter the 1099-R form. Only editing the 1099-R form and changing your answer to the RMD question will not work.

Re: RMD repayment

pFcF35-O — Mon, 08 Mar 2021 03:45:26 GMT

That took care of it. Thank you for your reply.