2020 RMD Rollover

Submitted by John Boyle on Sat, 2021-01-30 18:14

If a client received his 2020 RMD in February 2020, then deposited the funds back into the IRA in July (more than 60 days later, but I believe it was allowed in 2020). He received a 1099-R for the distribution. I know he’ll receive a 5498 in May for the rollover deposit, but I don’t know how he should handle everything on his 2020 tax return. Thanks



Submitted by Alan - IRA critic on Sat, 2021-01-30 20:44

He should just report it as a typical rollover. Show the 1099R gross on line 4a, 0 on 4b, and indicate “rollover” next to 4b. This rollover will not be applied to the one rollover limitation like an ordinary rollover would since it was done according to Notice 2020-51. The  5498 will also show a rollover contribution in Box 2.

Submitted by John Boyle on Sun, 2021-01-31 02:15

Thanks Alan

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