topic Covid relief for RMD in Retirement tax questions

Covid relief for RMD

ValSom — Mon, 26 Apr 2021 21:02:52 GMT

After IRS declared Covid reIief, I repaid back into my Rollover the amount of RMD I took earlier in 2020. Now, 1099R, Box 1 shows the amount as Gross Dist. making it taxable. How and where do I report the refunding and thereby reduce gross income? Otherwise, I will end up paying taxes now and again, when I eventually take the same (refunded to Rollover) money out of of IRA. Help!

Re: Covid relief for RMD

VolvoGirl — Mon, 26 Apr 2021 21:04:48 GMT

Since there is no RMD required for 2020 then 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). It will show as income on the Turbo Tax Summary or Review so check the actual 1040. The amount should be on line 4a or 5a and say ROLLOVER by the taxable lines 4b or 5b.

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 still get credit for any withholding taken out in box 4.

Re: Covid relief for RMD

ValSom — Wed, 28 Apr 2021 20:52:15 GMT

Thanks a million. I am going to follow your advise.