RMD for 2020 suspension

Forum|Forum|5 years ago
January 12, 2021
3 replies
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taxpayer received the RMD for 2020, later returned RMD to IRA account (Schwab). The 1099R shows the distribution code as 7, normal distribution and the full amount taxable. How should this be coded within the Lacerte tax program? Looking for the best way to handle this and assume 1099 matching will not match when I so -0- taxable income from the IRA and the 1099R shows the full amount. Thank you.

Lacerte Tax

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Just-Lisa-Now-

Intuit Community Champion

took it out, rolled it back in....cant you mark it as a rollover?

I dont speak lacerte.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

F

fishAuthor

Level 4

Thanks, that is what I plan to do, but the big computers in the sky will not match 1099R shows taxable income and 2099 show 7 as distribution code not rollover code. It would be nice to have another box to check covid relief aid etc so that it doesn’t automatically get kicked back as I think will happen with my approach.

qbteachmt

Level 15

"show 7 as distribution code not rollover code."

You might be thinking of Direct Transfer; rollovers don't need to be direct.

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qbteachmt

Level 15

From 2020-51:

"D. Permitted repayments of RMDs previously distributed from an IRA. In the case of an IRA owner or beneficiary who has already received a distribution of an amount that would have been an RMD in 2020 but for section 2203 of the CARES Act or section 114 of the SECURE Act, the recipient may repay the distribution to the distributing IRA, even if the repayment is made more than 60 days after the distribution, provided the repayment is made no later than August 31, 2020. The repayment will be treated as a rollover for purposes of § 408(d)(3) of the Code, but will not be treated as a rollover for purposes of the one rollover per 12-month period limitation in § 408(d)(3)(B) and the restriction on rollovers for nonspousal beneficiaries in § 408(d)(3)(C)."

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K

kelly8

Level 2

I have the same question. Did you find an answer? This is going to be a big issue.

qbteachmt

Level 15

@kelly8

"I have the same question. Did you find an answer? This is going to be a big issue."

You have the "same question" and are looking for the answer that is right here in this topic. Did you read the replies here, that explain it's just a rollover? And @PhoebeRoberts even noted how to enter it.

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