How to report RMD in Turbo Tax that was subsequently undone.

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
rgardne70
Posts: 39
Joined: Tue Oct 26, 2010 11:16 am

How to report RMD in Turbo Tax that was subsequently undone.

Post by rgardne70 »

If you took an RMD from Vanguard in 2020 and later undid it, how do you report that in Turbo Tax so that you are not taxed?

Vanguard has sent me a 1099-R to report the distribution.

Thank you.
User avatar
HueyLD
Posts: 7981
Joined: Mon Jan 14, 2008 10:30 am

Re: How to report RMD in Turbo Tax that was subsequently undone.

Post by HueyLD »

“ Because you received a 1099-R, the IRS will also have received a copy of this 1099-R. You will need to report this 1099-R rollover distribution on your tax return but none of it will be taxable. Just make sure that when you are reporting this information into TurboTax that for the question "What Did You Do With The Money From (your retirement fund)?", answer "I moved the money to another retirement account (or returned it to the same retirement account)"”

https://ttlc.intuit.com/community/retir ... /00/495947
User avatar
cowdogman
Posts: 722
Joined: Sat Dec 16, 2017 7:44 pm
Location: Washington State

Re: How to report RMD in Turbo Tax that was subsequently undone.

Post by cowdogman »

What HueyLD says. I did this yesterday in TT and the questions are very clear. If you enter the 1099-R info and answer the questions and are still not getting the result you expect, delete the 1099-R in TT and start again. When you're done "Go to Forms" and check your 1040. Line 4a should show the total distribution and 4b should show the taxable amount (if any). "ROLLOVER" should appear below the 4a amount.
Post Reply