RMDs from Company Retirement Plans

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  • #7289
    kaneohe
    Participant

    In mid March, I received RMDs from 2 different companies. After I found out that RMDs had been waived for 2020, I rolled both of these into an TIRA. The rollovers occurred within 60 days of receipt Was this OK?

    Next yr, I will receive 1099Rs showing the distribution as being taxable.
    I just enter this number in the 4c column (assuming 2020 form is same as last yr) and enter 0 in 4d with rollover note?

    Just trying to make sure I got everything straight………….

    another subject: in March I called these 2 plans and the rest of the plans to stop any further RMDs for 2020. In June a 3rd plan distributed one anyway. I am currently trying to get them to take it back. Assuming they do so, should I expect any 1099Rs for this yr….one for the distribution and one for the take-back? or should there be none?

    • This topic was modified 1 month, 2 weeks ago by kaneohe.
    #7296
    Alan S.
    Participant

    Hi Kaneohe.
    Line 4c indicates these were qualified plans, so these two 60 day rollovers would not have been a problem. I assume you replaced any withholding to complete the rollovers. Reporting on 4c and 4d as you stated.

    Second paragraph – with Notice 2020-51 you can roll the June 3rd distribution either back to the plan or more likely to an IRA. You have until 8/31 to complete that rollover, but only because the distribution would have been an RMD had 2020 RMDs not been waived. You will get 3 1099R forms, one from each plan, and all of them can be added together for lines 4c and 4d. Company 3 may not acceptance the rollback, and it might be easier to roll it to the IRA instead. The IRA will issue a 5498 reporting the total of these rollover contributions, so the IRS will know you rolled them over. Since 401k plans do not issue 5498 forms showing rollover contributions, that is another reason for rolling the June dist to an IRA. It will save you from having to make a explanatory statement with your return that you rolled a distribution to a non IRA plan.

    #7297
    kaneohe
    Participant

    Thanks for the info, Alan. No w/h on any of these.

    On the 3rd case, looks like the 403B plan did retrieve the funds from the bank today………so it sounds like I might need to provide an explanatory statement in addition to the rollover notation. I was hoping that they would just consider it as an error w/ action/recovery considered as a net nothing with no reporting.

    #7298
    Alan S.
    Participant

    It’s possible they will not issue a 1099R which would eliminate your need to report the distribution/rollover. But I would not bet on that.

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