Tax Tip: Reporting a 2020 RMD From an IRA That You Later Returned
If you paid back a "required minimum distribution" from an IRA last year, you still have to report the payout on your 2020 tax return.


Did you return a 2020 required minimum distribution (RMD) from an IRA after learning that RMDs were waived last year? If so, you need to know how to report it on your 2020 tax return – but it's a tad tricky.
RMDs from IRAs, 401(k)s and certain other retirement accounts were suspended for 2020. But some people took out an RMD in early 2020 before the waiver was enacted in late March. Those people had until the later of August 31, 2020, or 60 days after the payout to put the money back into the account and treat the distribution and subsequent redeposit as a tax-free rollover.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Form 1099-R
If you took an RMD from an IRA last year and then paid it back in time, the Form 1099-R you get this year from your IRA custodian will show the original payout – but it won't account for the later return of the funds. In other words, the tax-free rollover won't show up on the form.
Don't worry, though. The 1099-R is not wrong. Rollovers are generally not reflected on the 1099-R because custodians know only about the distributions. They're generally not aware of a future rollover.
Your 2020 Tax Return
When filling out your Form 1040 or Form 1040-SR for the 2020 tax year, you should include the total amount of IRA distributions shown on your Form 1099-R on Line 4a of the 1040 form. Then you subtract the amount that you properly and timely returned to the IRA and report the remainder – even if $0 – on Line 4b of the 1040. Write "Rollover" next to line 4b so the IRS knows why the numbers don't match.
If federal income taxes were withheld from the original distribution and reported on the 1099-R form, remember to claim the withholding on Line 25b of the 1040 or 1040-SR form.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joy is an experienced CPA and tax attorney with an L.L.M. in Taxation from New York University School of Law. After many years working for big law and accounting firms, Joy saw the light and now puts her education, legal experience and in-depth knowledge of federal tax law to use writing for Kiplinger. She writes and edits The Kiplinger Tax Letter and contributes federal tax and retirement stories to kiplinger.com and Kiplinger’s Retirement Report. Her articles have been picked up by the Washington Post and other media outlets. Joy has also appeared as a tax expert in newspapers, on television and on radio discussing federal tax developments.
-
What Wall Street's CEOs Are Saying About Trump's Tariffs
We're in the thick of earnings season and corporate America has plenty to say about the Trump administration's trade policy.
By Karee Venema
-
The Role of the U.S. Dollar in Retirement: Is It Secure?
Protect your retirement from de-dollarization, because “capital always goes where it is treated best."
By Adam Shell
-
Ten Cheapest Places To Live in Florida
Property Tax Make your Florida vacation spot daily living — these counties have the lowest property tax bills in the state.
By Kate Schubel
-
Missed Tax Day? Nearly One Million Taxpayers Still Can File and Claim Valuable Tax Refunds
Tax Refunds As many as one million taxpayers could be missing out on a significant tax refund.
By Gabriella Cruz-Martínez
-
Which Generation Pays the Most Tax in the US?
Tax Burden Polls show that most people feel like taxes are unfair. But which age group bears the brunt of the tax burden in the United States?
By Kelley R. Taylor
-
Tax Day 2025: Don’t Miss These Freebies, Food Deals and Discounts
Tax Day You can score some sweet deals on April 15 in some select restaurants like Burger King, Shake Shack, and more.
By Gabriella Cruz-Martínez
-
Tax Time: Does Your Kid Influencer Owe Taxes?
State Tax Some minors are making big money on social media. Here’s how to know if they need to file taxes.
By Gabriella Cruz-Martínez
-
Trump Plans to Terminate IRS Direct File program
Tax Filing The IRS Direct File program was piloted last year in 12 states and has since expanded to 25. But will it last under the Trump administration?
By Gabriella Cruz-Martínez
-
How Caregivers for Adults Can Save on Taxes in 2025
Tax Breaks Caring for your parent or spouse can be stressful, but the IRS offers tax breaks for qualifying taxpayers. Here they are.
By Kate Schubel
-
U.S. Treasury to Eliminate Paper Checks: What It Means for Tax Refunds, Social Security
Treasury President Trump signed an executive order forcing the federal government to phase out paper check disbursements by the fall.
By Gabriella Cruz-Martínez