topic IRA MRD taken and returned in Retirement tax questions

IRA MRD taken and returned

NAMKRAB41 — Mon, 08 Mar 2021 16:19:31 GMT

I took my MRD distribution then realized that it wasn't required this year because of Covid. I returned the money, reversing the transaction. This was done quickly, within two weeks. I received a 1099-R showing the full MRD (but ignoring the reversal) and a FIDELITY INVESTMENTS form 5498 showing the returned amount as "Rollover contributions". I have not yet found a path to enter these "rollover contributions" into Turbo-Tax. Please advise.

Re: IRA MRD taken and returned

MinhT1 — Mon, 08 Mar 2021 16:32:46 GMT

The RMD that you repaid are considered as rollovers to the same account and is not taxed.

Enter your form 1099-R normally. After entering your form 1099-R, click Continue until you reach the screen Tell us if you moved the money through a rollover or conversion. Check the radio button which corresponds to your situation then click Continue and follow the interview. Enter the amount repaid as a rollover and it will be excluded from taxation. You will still have the credit for taxes withheld.

Re: IRA MRD taken and returned

NAMKRAB41 — Tue, 09 Mar 2021 05:26:01 GMT

I followed your instructions, pressing continue after the 1099-R input, but did not get to the "Tell us if you moved the money" screen. How to get there?

Re: IRA MRD taken and returned

macuser_22 — Tue, 09 Mar 2021 05:34:21 GMT

@NAMKRAB41 wrote:

I followed your instructions, pressing continue after the 1099-R input, but did not get to the "Tell us if you moved the money" screen. How to get there?

Delete the 1099-R you entered and re-enter.

Answer the RMD question that "None of this distribution was a RMD" or"RMD not required" depending on the TurboTax version - because it was NOT a RMD, there were no 2020 RMD's.

Then you will get the screen to say it was "moved" and all rolled over.

That will put the 1099-R box 1 amount on the 1040 form line 4a with the word ROLLOVER next to it.

Re: IRA MRD taken and returned

GBB1 — Fri, 12 Mar 2021 22:48:39 GMT

The fix below is not working. I deleted the 1099-R as you suggest and reentered the information checking the button "none of this was a RMD". I am still not getting the screen saying this was rolled over and TurboTax is STILL including it in income. How does this get fixed?

Re: IRA MRD taken and returned

macuser_22 — Fri, 12 Mar 2021 23:00:30 GMT

@GBB1 wrote:

The fix below is not working. I deleted the 1099-R as you suggest and reentered the information checking the button "none of this was a RMD". I am still not getting the screen saying this was rolled over and TurboTax is STILL including it in income. How does this get fixed?

It is income, but not taxable income. Look at the 1040 line 4 that should have the "income" in line 4a and the taxable amount as zero on 4b with the word ROLLOVER next to it?