@Gaildance wrote:
I am very confused about this. The question that a withdrawal from a regular pension fund is an RMD was never asked before by Turbo Tax and I couldn't find a way to get out of it except to say "Yes. some or all of this withdrawal was an RMD".
Is the IRS interpreting this in a new way or is it a glitch in Turbo Tax. It also raises a question....If I am receiving my full pension payments each month, then can I couple the total annual pension amount with my IRA total, calculate the RMD for the year and attribute the full monthly withdrawal towards the RMD to satisfy the government? If so, I would not need to deplete my IRAs so fast.
The question has been asked the same way for MANY years if your age is 70 1/2 or older for ANY 1099-R.
Virtually all pension plans, defined contribution plans, and annuities in existence today fall under section 401 of the tax code.
Required minimum distributions for defined benefit plans and annuity contracts all require RMD's after age 70 1/2. If you receive periodic (monthly) payments from any pension plan you can be assured that the custodian of the plan is meeting the requirements so you can safely answer "yes" to the question.
The rules that the plan administrator must use to calculate the RMD as required by §401(a)(9) are defined in § 1.401(a)(9)-6) of the Internal Revenue Code (IRC).
The answer to the question does not go on your tax return, it is simply to make sure you do not owe any penalty for not taking the RMD or use it for an ineligible rollover.
The question is just to be sure that the requirement was met.
https://ttlc.intuit.com/replies/3302117
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
