On March 16,2020, I took a distribution of $63,500.00 from my traditional IRA (I’m 71 years old.) This amount was $46.68 over my 2020 RMD of $63,453.32. On July 31,2020 I rolled back the $63,500.00 into my traditional IRA. Will I have any tax problems because I rolled back $63,500.00 instead of $63,453.32? Many thanks.
I reached 70.5 in 2019, and I did complete my entire 2019 RMD in the calendar year 2019. About one hour ago I contacted my IRA trustee who will treat the $46.68 as an excess contribution and will return it to me. I hope that the IRS will understand the flow of numbers and not assess me any penalties. Thank you, and stay well.
There might be a few bucks of earnings distributed with the 46.68 which will show up in Box 2a of the 1099R. Such earnings will be taxable on your 2020 return.
You will report only the 63,453 as a rollover on line 4b of Form 1040 leaving 47 as taxable in addition to the earnings mentioned above. There will not be any penalty, but you should include an explanatory statement with your return regarding the corrective distribution as is the case for any corrective distribution.