There is no such thing as “paying an RMD“ and the government will doesn’t want you to do anything.
An RMD is the required minimum amount that you must withdraw from certain qualified retirement plans each year. The reason is to prevent taxpayers from accumulating large tax deferred retirement accounts, which they can pass on to their children without paying taxes. So, you have to withdraw a minimum amount every year and pay taxes on it, based on your life expectancy. TurboTax needs to know whether any part of your retirement income is an RMD, because there are certain things you can’t do with an RMD, such as roll it over into a different retirement account.
Because a lifetime pension payout is based on your life expectancy, it automatically meets the conditions to be considered an RMD. If you have a traditional fixed payment pension, you should indicate that yes, it is an RMD.
