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krustpils
Level 1

Returned (per The Care Act) IRA RMD get taxed in TurboTax

Introduction: I took RMD early in 2019 from the inherited IRA, which later in the year has been returned per The Care Act to the account. I have received 1099-R distribution form and Form 5498, which confirms the return ("rollover back").

 

TurboTax usage: While being prompted by TurboTax on actions with the RMD, I marked "rolled over to another account" (there is no place to enter the actual 5498 values). The confirmation appeared that this amount will not be taxed. However, it is being taxed by TurboTax. It seems like SW bug.

Please, help to correct the issue within TurboTax? 

4 Replies
Stokie040372
Level 2

Returned (per The Care Act) IRA RMD get taxed in TurboTax

If you're using the mobile version update to the latest version. That fixed it for me.

jmlally
New Member

Returned (per The Care Act) IRA RMD get taxed in TurboTax

I have the same issue and am using Turbo Tax for the MacBook -- High Sierra.  Can you tell me what I'm doing wrong or is Turbo Tax in error.

macuser_22
Level 15

Returned (per The Care Act) IRA RMD get taxed in TurboTax


@krustpils wrote:

Introduction: I took RMD early in 2019 from the inherited IRA, which later in the year has been returned per The Care Act to the account. I have received 1099-R distribution form and Form 5498, which confirms the return ("rollover back").

 

TurboTax usage: While being prompted by TurboTax on actions with the RMD, I marked "rolled over to another account" (there is no place to enter the actual 5498 values). The confirmation appeared that this amount will not be taxed. However, it is being taxed by TurboTax. It seems like SW bug.

Please, help to correct the issue within TurboTax? 


The 5498 is information and not entered into TurboTax.

 

 

You enter the 1099-R and if the RMD question  comes up say that "NONE if this distribution  was a RMD"  because it was not and RMD cannot be rolled over.   The answer that the money was moved to another (or same) account and choose all was rolled over.

 

If any tax was withheld in box 4 then that is a taxable distribution unless you replaced that money with other funds at the time of the rollover.

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
krustpils
Level 1

Returned (per The Care Act) IRA RMD get taxed in TurboTax

Thank you! Worked!

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