IRA RMD reversal.
How do I show the complete/or partial, return of my RMD for 2020.
I took my 2020 RMD in January and would like to return(reverse) the distribution. Most likely I will receive a 1099R showing the full distribution. The next step on my 2020 return is to show all or some of it being returned thus a lower tax liability. Searching on internet is not clear.
Thank you.
BW
IRS Notice 2020-51 paragraph III C and III D informs everyone that the
60 day rollover period has been extended to 8/31/20 for retirement plan distributions (III.C.) and IRAs (III.D.). As such, you need to redeposit the gross distribution by 8/31/20 to avoid having taxable income. Or you can redeposit an amount that is less if you so desire. You should inform the plan administrator or trustee of an IRA, that your deposit is a rollover that conforms to the 2020 IRS Notice.You should receive a 1099-R for the January distribution most probably with a Code 7 (normal distribution) in Box 7. If you are using a paper return, you just enter the gross amount distributed as gross income and the taxable amount as either zero or the amount you did not redeposit and you write the word "rollover" on that income line. If you are using tax software, you need to follow the software instructions for entering 60 day rollovers.
In article snipped-for-privacy@googlegroups.com you write:
According to this article it may be too late since the straightforward process to treat it as a rollover requires you do it within 60 days.
When you called the company that handles your retirement account to ask them how to put the money back, what did they say?
The 60-day deadline has been extended to August 31, regardless of when the distribution was taken. See the following announcement on the IRS web site.
Thank you Alan. (and others) Actually it was quite simple, my new taxable amount is lower, of course, and I click the rollover box and put in the returned amount and all flows correctly. Incidentally, I called American Funds about a partial return, they actually didn't know how to file it, thought it was listed as an IRA contribution, way off track on that advice.
bw
Thank you Alan. (and others) Actually it was quite simple,
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