RMD Reversal in 2020 reporting
I had several clients reverse their RMDs in 2020 in the allowable time.
Now as we go to report has anyone been given an indication as to HOW to classify or report?
From what I can surmise the distribution shows up on the 1099-R but there is no mention or indication about the reversal.
Permalink Submitted by Alan - IRA critic on Tue, 2021-01-26 13:58
It is simply reported like any other rollover, directly on Form 1040, lines 4a and 4b, with “rollover” shown next to 4b, assuming the account was an IRA. The custodian will issue a 5498 showing a rollover contribution in Box 2 like any other rollover and the IRS will match the 1099R and 5498. Of course, if there was withholding on the distribution, it also needed to be replaced using other money, or the amount withheld will be taxable on 4b.