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Client incorrectly received RMD from custodian but was subsequently returned

Level 2

I have a client who automatically received their RMD at the end of Dec 2020, which she specifically informed them that she did not want it, she immediately returned it but it wasn't till Jan 2, 2021. She also already received her 1099-R with the distribution code 7 (normal distribution)... Looking for guidance on how to handle this issue. The custodian of her retirement fund told my client to reach out to their accountant.

Thanks!

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Level 15

Treat it as a rollover.

This week's special - free amended tax returns to anybody bringing in a signed copy of the law providing tax breaks for unemployment.

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3 Replies 3
Level 15

Treat it as a rollover.

This week's special - free amended tax returns to anybody bringing in a signed copy of the law providing tax breaks for unemployment.

View solution in original post

Level 15

Treat as an Indirect Rollover. Screen 13, enter the 1099R then click Rollovers and enter the amount in the 1st line as To other than a Roth IRA   OOPS wrong software. 

FYI - the 1099R was correctly issued. 

Someday there will be a 5498 issued to show the rollover (due out by 5/31) 


ex-AllStar
Level 7
  • The custodians of retirement accounts benefit financially when individuals invest with them....yet they say "reach out to your accountant"...what a joke.