excess distribution
Is there a way to put money back into an IRA account? Last week I made a mistake on my first RMD and took too much in distribution. [I became 70.5 this year] Thanks!
Send your check to your IRA custodian clearly stating that it is a rollover contribution, and write “rollover” on the check. No other forms to file in addition to your 1040. On line 4a show the total original distribution, on line 4b show only the RMD amount (the taxable amount) and enter “rollover” on the line next to 4b. No explanation is needed. Tax programs should handle this easily, as it is no different than a non RMD related 60 day rollover.
Permalink Submitted by Alan - IRA critic on Sun, 2019-09-22 15:05
You can roll back the excess of your 2019 RMD within 60 days, but that will use up your one allowed such rollover for the next 12 months – and you cannot have done a rollover within the last 12 months for the current rollover to be allowed. Even though you do not have to take your 2019 RMD until 4/1/2020, since you have now taken a distribution that counts toward your 2019 RMD, you cannot roll back the RMD amount, just the amount in excess of the RMD amount.
Permalink Submitted by ellen dawmdellipizzi on Mon, 2019-09-23 09:10
Thanks! What form do I use? What is the exact wording? The money was withdrawn /distributed from an IRA brokerage account and directly deposited to a non-IRA checking account in another institution. I need the exact wording to get the money back from checking, into the IRA.