topic RMD not required by the Cares Act but Turbo Tax doesn't know? in Retirement tax questions

RMD not required by the Cares Act but Turbo Tax doesn't know?

MrVette — Tue, 16 Mar 2021 15:49:58 GMT

I took less distribution than the RMD but could not return the money to my IRA because I took it first of the year. You could only return it if you took it later in the spring.

Why does Turbo Tax ask for the 2020 required RMD and the actual RMD when in fact no RMD was required per the Cares Act? Also on the screen before it is set up to request a waiver of the tax if you took less than required. Seems like its needlessly leading me down a rabbit hole.

I have installed all the Turbo Tax updates.

Re: RMD not required by the Cares Act but Turbo Tax doesn't know?

Bsch4477 — Tue, 16 Mar 2021 16:16:30 GMT

Agreed. That wording has caused a lot of confusion.

Re: RMD not required by the Cares Act but Turbo Tax doesn't know?

MinhT1 — Tue, 16 Mar 2021 16:17:22 GMT

The RMDs have been waived for tax year 2020.

Please read this IRS document for more information.

In TurboTax, if you withdrew in 2020 less than your RMD, you can choose either Only part of this distribution was a RMD or None of this withdrawal was a RMD. There is no waiver to file and no penalty.

Re: RMD not required by the Cares Act but Turbo Tax doesn't know?

MrVette — Tue, 16 Mar 2021 16:40:29 GMT

I will try none of this distribution was an RMD and see what happens next.

Re: RMD not required by the Cares Act but Turbo Tax doesn't know?

MrVette — Thu, 18 Mar 2021 16:50:33 GMT

You have to claim "none". If you claim partial it leads you down the wrong path.

Re: RMD not required by the Cares Act but Turbo Tax doesn't know?

DianeW777 — Thu, 18 Mar 2021 18:27:37 GMT

Yes, you are correct. Technically there was NO RMD in 2020, because it was not required. That is the correct answer for the necessary results on your tax return without penalty.