Reply To: IRS broadens rollover relief for 2020 RMDs

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#8350
TrustYourself
Participant

Alan:
Thank you for the prompt reply. The sequence was this: In March, I took an RMD by moving funds from my 401k bank account to a personal account, without withholding taxes. The RMD rules were then changed. In May, less than 60 days from the initial transaction, I moved the funds from my personal account, back into the same 401k, but this time into the 401k brokerage account. The 401k bank account and the 401k brokerage accounts have identical registrations for which I am the trustee.

The 401k plan does allow for rollovers, so i know that I am in compliance with the plan and with notice n-50-51.

If the IRS would consider this as an erroneous distribution which was immediately rectified, no reporting would be needed. if I must report the withdrawal, how do I code the 1099-R as a normal distribution? And how do I report the rollover back into the 401k in May? Would the later just be an entry on line 7c of F5500-EZ?

Maybe I’m overthinking this and trying too hard to avoid the reporting!

Any insights would be appreciated.