I am 75 and took my full RMD in June 2020
Upon learning that the CARES act provided that no RMD would be required in 2020, I redposited the complete RMD withdrawal back to my IRA account in August.
The TT Deluxe questionnaire asks to choose one of the below options:
did you receive all of the RMD for 2020
did not receive all the RMD for 2020
was not required to take an RMD
Which option do I choose when the entire RMD was redeposited?
Where would the redeposit be shown in my completed 1040??
Thanks for your help
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Please select "was not required to take an RMD" since RMDs were waived for 2020. You must indicate to TurboTax that none of the distribution was RMD. If you already enter the 1099-R as RMD and changing your answer to the RMD question doesn't work then you have to delete and renter the 1099-R form.
Please follow these steps to enter your 1099-R and RMD rollover:
Please select "was not required to take an RMD" since RMDs were waived for 2020. You must indicate to TurboTax that none of the distribution was RMD. If you already enter the 1099-R as RMD and changing your answer to the RMD question doesn't work then you have to delete and renter the 1099-R form.
Please follow these steps to enter your 1099-R and RMD rollover:
I really appreciate the fact you provided an approach to solve this conundrum of informing the IRS that I returned the full RMD after learning I could return it. However, your step-by-step instructions didn't work in the Home and Business version of TurboTax for tax year 2020. Might one reason be that my RMD came from an inherited IRA? Do you have any other suggestions?
Yes, coming from an inherited IRA will prevent you from seeing the questions regarding returning the money. Delete the 1099-R and re-enter it, but this time answer NO to the inherited IRA question. Normally, you can't return the RMD from an inherited account but 2020 is a special case. To get the questions to appear in TurboTax, answer NO to the inherited IRA question. You can't edit it, you have to delete it and re-enter it though. @Winds Calm
Thanks! That worked perfectly with one slight addition to your suggestion. While re-entering the 1099-R information after deleting the original entry, as you suggested, it didn’t first work if I entered “Death” as the cause under box 7. I had to select the “normal distribution”. Then I got the right series of questions to answer, one of which had a “yes” question that included the fact that I returned all the funds. Thanks again!
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