My RMD for 2020 was scheduled to be distributed monthly. Under the 2020 CARES Act retiree taxpayers were allowed to suspend RMDs for 2020. I did that and received only part of my total RMD for 2020. However, TuboTax is now wanting the calculate a penalty for the RMD portion I didn't receive. Given the CARES Act, that seems to be incorrect! Is there an explanation for the issue I describe?
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Per Cares Act, I chose to return a portion of RMD already received. TurboTax wants to figure my penalty for not receiving entire RMD. How do I deal with this?
In 2020 there was an option for repayment of retirement accounts. To post this you would
TurboTax will include the gross amount on Form 1040 line 4a or 5a but will exclude the entire amount from the taxable amount on line 4b or 5b and will include the word ROLLOVER next to the line.
The CARES Act enabled any taxpayer with an RMD due in 2020 from a defined-contribution retirement plan, including a 401 (k) or 403 (b) plan, or an IRA, to skip those RMDs this year.
This includes anyone who turned age 70 1/2 in 2019 and would have had to take the first RMD by April 1, 2020. This waiver does not apply to defined-benefit plans.
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