Solved: 1099r distribution and 100% repaid
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Level 1

1099r distribution and 100% repaid

I received a 1099R for 2020.  Block 1 and 2 show $32800.  I replied in the later questions that all had been returned to the IRA.  TT shows I owe $1543.  If the Form 5498 will report that all has been returned, do I need to even enter any 1099R data 

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Accepted Solutions
Employee Tax Expert

1099r distribution and 100% repaid

Don't enter 0 for the 1099-R; TurboTax does handle the return of a distributed 2020 RMD (required minimum distribution)  Form 1099-R is required to have the entire gross amount in boxes 1 and 2a, box 2b Taxable amount not determined marked, the federal tax withholding in box 4, code 7 in box 7, the IRA/SEP/SIMPLE box marked and any state tax withholding in box 14.

 

Since RMDs were waived for 2020, no part of the distribution was actually an RMD even though it was taken with the intention of satisfying an RMD.  In TurboTax, indicate that the distribution was not an RMD.  Indicate that you moved the money to another retirement account (or returned it to the same account), then indicate how much of the distribution you returned to the IRA.  TurboTax will include the entire gross amount on Form 1040 line 4a but exclude the amount rolled over from the amount on line 4b.  TurboTax will also include the word ROLLOVER next to the line.

 

If you did not substitute other funds for the amount withheld for taxes so as to complete the rollover of the entire gross amount of the distribution, the amount of the withholding remains distributed, not rolled over, and subject to tax; it's too late to complete a rollover of that portion of the distribution.  If the overall tax liability determined on your tax return is less than your total withholding, including the amount withheld from the IRA distribution, you'll get a tax refund.

 

@btb010438

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9 Replies
Level 15

1099r distribution and 100% repaid

Was there any withholding taken out in box 4?  Did you also replace the withholding when you returned it to the IRA?  Was this for a RMD?

 

 

New Member

1099r distribution and 100% repaid

I have the same problem I received a 1099R with the full amount of the distributions and a 5498 showing all was returned.  No withdrawal required for 2020.  Turbo Tax does not provide a way to handle this.  I don't feel that I should just enter 0 for the 1099R, but don't see any other option.

Level 15

1099r distribution and 100% repaid

Since there is no RMD required for 2020,  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).  

Employee Tax Expert

1099r distribution and 100% repaid

Don't enter 0 for the 1099-R; TurboTax does handle the return of a distributed 2020 RMD (required minimum distribution)  Form 1099-R is required to have the entire gross amount in boxes 1 and 2a, box 2b Taxable amount not determined marked, the federal tax withholding in box 4, code 7 in box 7, the IRA/SEP/SIMPLE box marked and any state tax withholding in box 14.

 

Since RMDs were waived for 2020, no part of the distribution was actually an RMD even though it was taken with the intention of satisfying an RMD.  In TurboTax, indicate that the distribution was not an RMD.  Indicate that you moved the money to another retirement account (or returned it to the same account), then indicate how much of the distribution you returned to the IRA.  TurboTax will include the entire gross amount on Form 1040 line 4a but exclude the amount rolled over from the amount on line 4b.  TurboTax will also include the word ROLLOVER next to the line.

 

If you did not substitute other funds for the amount withheld for taxes so as to complete the rollover of the entire gross amount of the distribution, the amount of the withholding remains distributed, not rolled over, and subject to tax; it's too late to complete a rollover of that portion of the distribution.  If the overall tax liability determined on your tax return is less than your total withholding, including the amount withheld from the IRA distribution, you'll get a tax refund.

 

@btb010438

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Level 1

1099r distribution and 100% repaid

Thank you verrrrryyyyy much

 

 

New Member

1099r distribution and 100% repaid

I had an inhered IRA that I initially took the distribution, but paid it back.     Turbotax dis not recognize the "rollover"  on the 1040  I did put not RMD   I also have a couple other IRAS that I took charitable decustions for the amounts withdrawn.  They are handled fine.

 

Not sure what to do here.  Your fix didn't seem to work.   For the charitable deductions, I did put NOT RMD.

Steve

Employee Tax Expert

1099r distribution and 100% repaid

If you took the funds out of the IRA and then redeposited them into the IRA, you can indicate this in TurboTax by following these steps:

  1. A few screens after the 1099-R input screen, you should see a screen, What Did You Do With The Money From this Payer?  
  2. Mark the radio button next to moved the money to another retirement account (or returned it to the same retirement account).  
  3. Below the grey line, click the radio button next to I rolled over all of this money"
  4. Click Continue.

 

@srseboldt

New Member

1099r distribution and 100% repaid

I swear I did this!   Now when I go back to edit this transaction, after I click Not an RMB, it asks if I donated this to charity but doesn't give me the screen that we are talking about.  

 

Curious.

New Member

1099r distribution and 100% repaid

Well, I reentered it   And it worked.   I noticed on the prior entry, I did put Did you inherit this from  (name) Securities.  I had said yes--because the account did come from that brokerage.  This time I put no, and it worked.

 

Thanks!

steve

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