When my mother died in 1995, I rolled over her pretax pension monies into an annuity. For 30 years (the max at that time) I received a payout and recorded the taxable monies on my tax return. No problem. This year for the first time Turbo Tax asked whether it was an RMD. Assuming they meant was it a required withdrawal for me (what else could it have been) I said yes and my tax refund decreased by 25% of the amount I had received. Changing it back to no, I got the 25% back. My tax rate is no where near 25%. Why? What does Turbo Tax mean by an RMD here?
