Steve W 19
Level 1

I understand the questions in your reply. Let me try to lay it out in a little more detail.

Client has two IRAs

IRA #1 is an inherited IRA (code 4) from which RMDs have been taken for several years

IRA #2 is a Traditional IRA (code 7) from which RMDs have been taken for the last few years. IRA#2 has some basis in it from Non-deductible contributions.

Early in 2020, client took distributions from both IRAs. Later in the year, per the CARES Act, he rolled an amount back into each IRA. The amount rolled back into each was less than the initial distribution from each. 

Custodian issued 1099-Rs for both IRA#1 and IRA #2.

IRA#1 is checked as an Inherited IRA on the 1099-R worksheet and the taxable amount (amount not rolled over) is entered in box 2a. The amount Rolled over is entered in B2 on the Rollover section of the 1099-R Worksheet

IRA#2 - the traditional IRA that has some basis, has been entered several ways on the 1099-R Worksheet. (a.) Taxable portion (amount not rolled over) in box 2a and the amount rolled over in box B2; (b.) Box 2a left blank and the amount rolled over in box B2. (c.) Amount taxable in box 2a and box B2 left blank.

In all cases the amount that is listed in 2a for IRA#1 (inherited) shows in box 4b of the Form 1040.  Nothing from IRA#2 shows in box 4b of the Form 1040 for any of the IRA#2 1099-R worksheet entries.

Hope this makes the fact pattern a little clearer. From your reply it sounds like there was a Forum in February that identified a similar problem.

What I need now is the work around to make the correct values show up on the Form 1040 for box 4b. What was the solution in February?

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