topic I took RMDs in January, 2020 and returned them after the CARES Act eliminated the need for 2020 RMDs. How do I show the return so they are non-taxable? in Retirement tax questions

I took RMDs in January, 2020 and returned them after the CARES Act eliminated the need for 2020 RMDs. How do I show the return so they are non-taxable?

hollindw — Mon, 05 Apr 2021 23:51:28 GMT

The 1099-R shows code 4 in box 7. I got a form 5498 showing the return as a "Rollover Contribution"

Re: I took RMDs in January, 2020 and returned them after the CARES Act eliminated the need for 2020 RMDs. How do I show the return so they are non-taxable?

macuser_22 — Mon, 05 Apr 2021 23:55:56 GMT

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.

If this is an inherited IRA then answer the "Is this IRA inherited" with NO. The purpose of that question is to PREVENT rolling an inherited IRA over, but is allowed for 2020 only.

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

Also check the box that this was NOT a COVID related distributions - it was a RMD that was returned.

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

Re: I took RMDs in January, 2020 and returned them after the CARES Act eliminated the need for 2020 RMDs. How do I show the return so they are non-taxable?

hollindw — Fri, 09 Apr 2021 11:34:30 GMT

That was exactly what I needed! Thank you very much.