dmertz
Level 15

Retirement tax questions

"RMD" stands for Required Minimum Distribution.  By law, payments from a pension during the payout phase are required distributions and are the minimum (also maximum) amount required to be distributed.  Therefore, these payments are, by definition, RMDs.  Pensions administrators just don't bother to state it as such because there is generally no question as to the nature of such a distribution as their might be from nonperiodic payments from retirement accounts.

 

For those beyond the applicable age, TurboTax asks the question because the details of the Form 1099-R in no way indicate whether the form is reporting amounts that are ineligible for rollover due to being required distributions.