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Level 1
posted Mar 5, 2021 2:27:01 PM

Traditional IRA RMD rollover based on the IRS ruling 3/27/2020

Why is Turbotax showing I am being taxed for a RMD from my Traditional IRA when I rolled over the entire amount back into the same IRA? 

0 5 526
5 Replies
Expert Alumni
Mar 5, 2021 2:41:30 PM

The RMD that you repaid are considered as rollovers to the same account and is not taxed.

 

Enter your form 1099-R normally. After entering your form 1099-R, click Continue until you reach the screen Tell us if you moved the money through a rollover or conversion. Check the radio button which corresponds to your situation then click Continue and follow the interview. Enter the amount repaid as a rollover and it will be excluded from taxation. You will still have the credit for taxes withheld.

Level 15
Mar 5, 2021 3:22:37 PM

Delete the 1099-R and re-enter.

 

Answer the RMD question that "None of this distribution was a RMD" or "RMD not required".   The you will get the rollover question.

Level 1
Mar 12, 2021 12:20:13 PM

Sorry I do not see the screen that says "Tell us if you moved the money through a rollover or conversion. Will I find that in the IRA questions section or later? 

When I look at the income summary screen it still shows that my IRA is flagged as income.

Expert Alumni
Mar 16, 2021 11:52:51 AM

The question will come up in the Form 1099-R section where you enter the information about your distribution.  

Level 15
Mar 16, 2021 1:10:35 PM

What code is in box 7 on your 1099-R?