Retired and I withdrew money from my 401k account in February 2020. Then we found out that no withdrawal was needed in 2020 because of the Cares Act. In June 2020 we added/redeposited the exact amount into a retirement account. An attempt to ZERO OUT the original withdrawal. Turbo tax indicated that the deposit was not legal as we had no income in 2020 and therefore not a legal deduction. . What should I do which will enable me to have a net effect of zero for the withdrawal and redeposit?
Thank you, Bud Gorski [phone number removed]
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In the "Retirement Income" topic when entering the Forms1099-R, if you meet the qualifications below, you will select the box "I took this money out for a qualified disaster (includes COVID-19)" in the follow on questions. There you will be able to enter payback information.
Currently the Forms 8915 for this situation have not been approved. The estimated implementation is 2/18/2021. Here is a link to monitor for forms updates in TurboTax.
The distribution was made to a qualified individual. A qualified individual meets at least one of the following characteristics:
[edited 2/3/2021 11:31am]
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