topic How do I file for an erroneously issued RMD? in Retirement tax questions

How do I file for an erroneously issued RMD?

kacha22 — Fri, 18 Jun 2021 01:51:42 GMT

Taxes were withheld incorrectly on my RMD.

Re: How do I file for an erroneously issued RMD?

xmasbaby0 — Fri, 18 Jun 2021 05:08:21 GMT

Please explain. Not sure what you mean by the tax being incorrectly withheld. You need to enter the 1099R as it appears and enter the tax withheld as it appears on that document. The software will then calculate the taxable amount of your retirement income.

To enter your retirement income, Go to Federal> Wages and Income>Retirement Plans and Social Security>IRA 401 k) Pension Plan Withdrawals to enter your 1099R.

Re: How do I file for an erroneously issued RMD?

kacha22 — Wed, 23 Jun 2021 03:41:59 GMT

Thanks for your response. The erroneous RMD was in the form of a check from TDA. Since the law had been changed to not require RMDs be issued, I returned the check to TDA (after some discussion) for a 60-day rollover back into my account. Since TDA had sent the taxes to the IRS I did not have a way to get them back. How do I prepare my tax return (properly report/record the 1099) and get my tax money that TDA sent to the IRS back?

I'll look forward to your help/response.

Thank you,

Charles F. Swift

Re: How do I file for an erroneously issued RMD?

fanfare — Wed, 23 Jun 2021 18:42:53 GMT

The tax money TD sent to the IRS is a distribution, because you did not return it to TD as part of your returned rollover within 60 days.

The distribution is taxable income. That's how it works and there's not much you can do about it.

Were you affected by COVID in 2020 in the way defined by the IRS for affected persons?

It the answer is YES, then there are things you can do if this is important to you.

Re: How do I file for an erroneously issued RMD?

VolvoGirl — Wed, 23 Jun 2021 18:50:50 GMT

When you sent the check back did you also return the tax withholding from your own money? Doesn't sound like it. Then that part will become a taxable distribution. You enter the full 1099R and say you rolled over the check amount (DVD's if you put it back into the same account). You will get credit for the withholding in box 4 on 1040 line 25b.

When you enter the 1099R be sure to say it was NOT a RMD since RMD was not required for 2020. Then it will let you say you rolled it over.