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Returning Member
posted Jan 13, 2021 4:24:23 PM

Rerurned RMD

I received a 1099-R showing my RMD distribution from my IRA.  The RMD distribution was returned to the IRA.  Where do I input the returned RMD distribution in Turbo Tax?

0 21 2308
21 Replies
Level 15
Jan 13, 2021 4:28:58 PM

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).  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.

Returning Member
Jan 13, 2021 4:33:36 PM

The 1099-R is for a distribution from an IRA.  How do you enter into TurboTax that it was returned?  There was no withholding taken out.

Level 15
Jan 13, 2021 4:38:58 PM

Didn't you understand my answer above?  

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 say ROLLOVER by the taxable line 4b.

 

Level 15
Jan 13, 2021 4:48:27 PM

Here, I made you 3 screen shots

 

RMD.jpgRMD2.jpgRMD3.jpg

Level 3
Jan 14, 2021 8:26:25 AM

I am using the PC version of TT and I don't get that screen asking about a rollover.  No matter how I enter it, as RMD or not as RMD, when I got to Forms, it still shows as taxable income on the 1040 line 4b.

 

What am I missing?

Level 15
Jan 14, 2021 8:30:42 AM

Is it an inherited IRA?  I think that is quirky.   @dmertz 

Level 3
Jan 14, 2021 8:32:49 AM

Mine is an inherited IRA, as well.

Level 15
Jan 14, 2021 8:41:12 AM


@BarryK123 wrote:

I am using the PC version of TT and I don't get that screen asking about a rollover.  No matter how I enter it, as RMD or not as RMD, when I got to Forms, it still shows as taxable income on the 1040 line 4b.

 

What am I missing?


The only way you would not see the following screen in the desktop editions is if you indicated this was from a Non-Qualified Plan if this is a pension or annuity.  

If from an IRA you would have to indicate that this distribution was transferred to a qualified charity.

Roll Over TTD 2020.JPG

 

Level 15
Jan 14, 2021 9:52:58 AM

You could try deleting and reentering the 1099-R if you have not already done so.  Be sure to indicate the none of the distribution was RMD even if the original intent of the distribution was to be an RMD.  RMDs were waived for 2020.

Level 3
Jan 14, 2021 10:33:27 AM

Yes, it was necessary to delete and re-enter the info.  Simply editing the already entered info didn't work.  Thanks.

Returning Member
Jan 14, 2021 11:37:35 AM

The answer is the Distribution Code in Box 7 of the 1099-R should be an "N" and not a "7"

I enter data on the Forms.

Level 15
Jan 14, 2021 11:45:47 AM

Code N has nothing to do with a returned RMD.  You cannot use code N.  You must use the code that is present in box 7 of the Form 1099-R provided by the payer.

Returning Member
Jan 14, 2021 12:25:57 PM

Where on the 1099-R entry form do you say it is not an RMD?  I enter it directly into the TT form.

Level 15
Jan 14, 2021 12:39:27 PM


@CaptainAl22 wrote:

Where on the 1099-R entry form do you say it is not an RMD?  I enter it directly into the TT form.


After you have completed entry of the form there are a series of pages to go through.  One will ask if this was a RMD.

Level 15
Jan 14, 2021 12:40:18 PM

@CaptainAl22 Go back to step-by-step and complete the 1099-R section.

Returning Member
Jan 14, 2021 12:52:23 PM

I did and put 2a Taxable Amount = 0.00

Level 15
Jan 14, 2021 2:19:04 PM

Form 1099-R for a regular distribution from a traditional IRA must never have a zero in box 2a.  It is required to show the same amount in box 2a as is in box 1.  The Form 1099-R for an IRA distribution must be entered exactly as shown on the form received from the payer.  If you haven't yet received the Form 1099-R from the payer, delete whatever you have entered regarding this distribution and wait for the form to arrive from the payer.

Returning Member
Jan 14, 2021 4:35:10 PM

I have the 1099-R.  I have no way to enter it into TT unless I have box 2a as zero.  What we need is a form showing the distribution was rolled back.  I have no way to tell TT it was.  If you have a way let me know. 

Level 15
Jan 14, 2021 4:41:50 PM

There is no entry form to tell that the distribution was rolled back other than the pages that ask what you did with the money.  The rollover is indicated on your tax return by how you answer the questions that TurboTax asks when you are entering the Form 1099-R as provided by the payer.  The screen images provided others above show how to answer the questions to get that result.  If you don't see those questions, delete the 1099-R from TurboTax and reenter, answering the questions as described in those screen images.  Otherwise, describe the sequence of questions that you are seeing and the answers you are providing to those questions.

Level 15
Jan 14, 2021 4:44:45 PM

The form is the 1040 line 4b showing zero taxable with the word ROLLOVER by it.

Returning Member
Jan 14, 2021 5:26:26 PM

I got it.  Thank You so much