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Required Minimum Distribution reversed / put back in account

irfan
Level 1

I have a client who took her RMD in April and then returned the money to her retirement account in May after learning that RMDs were not required in 2020.  The 1099-R received doesn't take her reversal/contribution into account.  How can this be entered and treated appropriately (recover taxes withheld) in ProConnect?

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22 Replies 22
qbteachmt
Level 15

You mark it as a Rollover. There is nothing special about that.

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NDom27
Level 2

I have the same situation.  But checking the rollover box is not taking the amount out of taxable income.  Only the tax that was withheld is remaining, as it should.  I am still looking for a solution.  Reflecting taxable amount as $0, corrects the taxable income, but generates error messages.

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qbteachmt
Level 15

"Only the tax that was withheld is remaining, as it should."

The Gross would be taxable, unless that same amount is rolled over. you cannot have rolled over the withholding; to redeposit that same total would require "makeup" by other funds. Did they redeposit the Gross they first took, or not?

If not, that is a taxable amount.

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irfan
Level 1

In my case, the gross amount was put back in the account.

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Terry53029
Level 11
Level 11

On the 1099R worksheet you scroll almost to bottom under rollovers, and check the correct box

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qbteachmt
Level 15

Let's dive a bit more into this: "How can this be entered and treated appropriately (recover taxes withheld) in ProConnect?"

You don't "recover" the tax withheld.

Here is the math:

Gross distribution minus tax withheld = net paid to the client.

To fully Roll Over requires you to put back the Entire total, or Gross. That means the amount withheld is needed as a Make Up amount from current funds on hand. You need to put back the Gross. Then, on the tax form, the amount withheld is treated the same as any withholding and any estimates = just an amount prepaid to taxes owed.

If you only return the amount you got, that is not a Full Roll Over. That is a Partial Roll Over. The amount not put back in, whether because of withholding or because you decide to keep and use some of the distribution, is the amount Taxable. Then, you compute how it is taxable per the tax form, basis, etc.

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NDom27
Level 2

According to Pro Series support,  this cannot be processed yet.  It will be processed on the Qualified Disaster Distribution Smart worksheet, found on the 1099-R worksheet.  It already references Coronavirus-related distribution.  Form 8915E is not yet included in the program but will be finalized on 2/25.

 

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qbteachmt
Level 15

A rollover doesn't need the Disaster form. 8915-E is used for allocating the taxable income over three years or taking the total amount in the first year.

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fiddlemotown
Level 1

Where in TurboTax do you enter a Rollover?

I made the RMD and then reversed it, but I received a 1099-R and can't find where to enter it as a Rollover.

Help!

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qbteachmt
Level 15

@fiddlemotown 

You seem to be lost on the internet.

You’ve come to a Peer User community for Intuit Tax Preparation products supporting tax preparation professionals using ProSeries, Proconnect and Lacerte , and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Thanks.

 

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fiddlemotown
Level 1

You may be right, but no one over there knows the answer.

if you know the answer, why not answer?

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qbteachmt
Level 15

"if you know the answer, why not answer?"

No one here is using TurboTax. That's the whole point of the different Communities.

TurboTax has a Help system. Did you ask the Help system? Search on 1099-R and search on Rollover.

You are posting in a Section of the community for using ProSeries, which is not TurboTax; Lacerte, which is not TurboTax; and ProConnect, which is not TurboTax.

There is a lot of different software in use by professional tax preparers to do their clients' tax returns. None of these will be TurboTax.

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qbteachmt
Level 15

@fiddlemotown 

Here:

https://ttlc.intuit.com/community/forums/searchpage/tab/message?advanced=false&allow_punctuation=fal...

But now, you have to identify Which TurboTax program you are using; go There and use those tools.

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qbteachmt
Level 15

@fiddlemotown 

Here's an example of the users here having the same issue:

https://proconnect.intuit.com/community/community-ideas/separate-searches-for-proconnect-proseries-a...

We all want Search tools to work better. That doesn't mean just popping into any community on the internet to get their help on software we are not even using.

Hope that search link helps.

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Mary Lu
Level 1

on 1099r worksheet page 2 is a place to input rollover amount

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fiddlemotown
Level 1

I did figure out to get Turbotax to do the Rollover correctly. For those who are interested, her's what I did.

After entering the 1099r information, and asked whether the withdrawal was for RMD, enter NO. Even though it was intended for this originally, this fact is never specified on the 1099r. Once this is done Turbotax will then ask if the money was returned Answer YES. It will then ask whether it was Rolled Over. Answer YES. 

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qbteachmt
Level 15

@fiddlemotown 

"I did figure out to get Turbotax to do the Rollover correctly. For those who are interested, her's what I did."

TurboTax?

You seem to be lost on the internet.

You’ve come to a Peer User community for Intuit Tax Preparation products supporting tax preparation professionals using ProSeries, Proconnect and Lacerte , and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Thanks.

 

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qbteachmt
Level 15

@fiddlemotown 

Please, go Help your TurboTax peer users.

Stop participating in the forum for using ProSeries, because these are Different Software programs. Your info has no meaning, here.

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Mary Lu
Level 1

I AM USING PROSERIES

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qbteachmt
Level 15

@Mary Lu 

Yes, that you are using ProSeries is understood. However, a whole bunch of TurboTax people seem to think these are the Same Program, and they are not. The TurboTax people keep hitting these forums through some sort of search results, and they are Lost on the Internet.

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Mary Lu
Level 1

I am not lost on the internet, I'm a tax professional using proseries.  How could turbo tax people be in this community when you have to sign into your proseries account to reach it.

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qbteachmt
Level 15

@Mary Lu 

"I am not lost on the internet, I'm a tax professional using proseries."

Yes; that is easy to see. And if you click on your username, you see your other questions are related to preparing clients' tax returns. You are Fine here.

"How could turbo tax people be in this community when you have to sign into your proseries account to reach it."

It's on the internet. It's available through your regular browser. This is your input here:

https://proconnect.intuit.com/community/coronavirus/discussion/re-required-minimum-distribution-reve...

 

And your Intuit ID log in is good for any Intuit site, really. You could go log into the TurboTax forum and answer or ask, over there. There is no Lock on these forums. Intuit considers customer support to be a social networking function for peer users across all the log ins.

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