rmd tax question

Submitted by lawrence mauskapf on Fri, 2021-01-22 18:32

I had two inherited IRA accounts on the same deceased with different custodians. I took the 2020 RMD from one of the accounts for $1950 in early January of 2020. In early July I sent them back $1023, because the custodian said that was the RMD on the amount in this particular account, and the maximum allowed. I computed the total 2020 RMD and took it all from one account.

So today I get 1099-R and they show the entire $1950 as gross distribution.

Am I out of luck in showing the RMD on my tax return of $927 ($1950-$1023). Am I in trouble by making a repayment to an inherited IRA?

Thank you.



Submitted by Alan - IRA critic on Fri, 2021-01-22 19:43

The total distribution must be reported on the 1099R. However, you should report a rollover on line 4 of your 1040, leaving only the difference of 927 on line 4b, which will be the taxable amount. Your repayment was allowed through 8/31 under the terms of Notice 2020-51.

Submitted by David Mertz on Fri, 2021-01-22 20:47

A non-spouse beneficiary is not permitted to repay a CRD.

Submitted by Alan - IRA critic on Fri, 2021-01-22 21:08

Thanks. Edited the post.

Add new comment

Log in or register to post comments