Ask Terry Questions 2020 RMD put back

2020 RMD put back

By Terry Savage on February 21, 2021 | Wild Card

Dear Terry
I made a mistake with my 2020 RMD. I withdrew my RMD early in 2020 and had some of it withheld for taxes. When we found out that RMD’s were not required I rolled the whole RMD amount back into the IRA without considering the withholding. Can I fix this before I file my 2020 tax return?
Thank you

Terry Says

If you returned the money by August 31, 2020, you can treat it as a rollover. Instructions are on pages 25-27 of the form 1040 instructions. Report the withdrawal on line 4a if it was an IRA. Then report “zero” on line 4b if you put the money back. Indicate it was a rollover. It’s complicated, so I suggest you get a tax pro to help you do this. You won’t get the withheld tax back, but there is a place to get it as a credit against this year’s taxes.

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