Federal 2011: Required Minimum Distributions
Taxpayers with a Traditional IRA must take required minimum distributions from their IRA in the year after they turn 70 ½ years of age. Some or all of the required minimum distribution is amount is taxable income to the taxpayer.
Certain customers, who received a required minimum distribution from their Traditional IRA, may have filed an incorrect tax return.
TurboTax has fixed this issue.
How to tell if you may be impacted
You may be affected if ALL of the following are true:
- You filed a 2011 federal tax return before April 26, 2012 AND
- You previously made non-deductible contributions to your Traditional IRA AND
- You received a federal Form 1099-R for your required minimum distribution from this Traditional IRA AND
- Your Form 1099-R had ALL the following information:
- You had an amount in Box 1
- You had an amount in Box 2a
- Both boxes are checked in Box 2b
- You had code “7” in Box 7
- The “IRA/SEP/SIMPLE” Box was checked in Box 7 AND
5. You converted the entire distribution amount to a ROTH IRA AND
6. You then recharacterized this entire amount back to a Traditional IRA AND
7. Your amount from box 2a of your 1099-R is not included your federal Form 8606, Line 7
Note: You may not have a Form 8606 if you only received one Form 1099-R, with the above conditions. If this is the case, then you are also impacted by this issue.
If you are affected, you may have underpaid your federal tax. You may need to amend your federal tax return. Your state return may also be affected and if so, you will need to amend it.
You can make the corrections yourself.
- To do it yourself, please follow these step-by-step instructions on:
- Amending your federal return and
- Amending your state return.
- After you make the changes to your tax return, you will need to mail a copy of:
- Your federal amended return to the Internal Revenue Service and
- Your state amended return to your state tax authority, if your state return is affected.
- Your printed return(s) will include instructions on how and where to mail it.
- If you need assistance, call us at the phone number in the email.
Or let us do the work for you.
- Please download and print this Authorization Form .
- Complete the form and fax it to us at the number printed at the top of the form.
- A TurboTax representative will contact you (within 15 days) when your corrected return is ready to be securely emailed back to you.
- You can print, sign, and mail the corrected return to the Internal Revenue Service and to your state tax authority if your state return is affected.
If you need to contact us, please use the phone number in the email from TurboTax and tell the representative you’re calling about the Federal 2011: Required Distributions.