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Retirement tax questions
It is asking about the monthly distributions (though it doesn't care if they are monthly, annual, semi-annual, or every other day, just the total for the year, which should be shown on the 1099-R in box 1).
TT needs to ask its questions to determine the taxable amount of your pension/IRA distributions.
- if you put the money into another IRA it might not be taxable. that's a rollover.
- if you did not take your required minimum distribution you might owe a penalty.
In the normal course of things for a retired person, neither will apply, but TT has to ask to be sure. they don't usually apply because the safer way to transfer custodians (e.g. move from Fidelity to Vanguard) is to have them do a direct rollover. Then the money never comes to you and you don't get a 1099-R for the rollover. Secondly, you RMD is probably automatically calculated and distributed monthly.
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March 14, 2021
11:09 AM
2,128 Views