Retirement tax questions

If you are receiving regular monthly payments, the IRS considers those payments to automatically satisfy the RMD for the specific contract, so you can follow the instructions below to quickly complete this section. 

The reason you are being asked about RMD is that, even if your annuity has no RMD requirement, you will still need to answer the RMD questions to clear the program's diagnostic check. 

Also, the SECURE ACT now allows excess payments from an annuity to count toward the RMDs of your other IRAs. Therefore, TurboTax asks these questions to determine if you can use the annuity income to lower the amount needed to satisfy other RMDs.

To quickly answer the RMD questions, do the following:

1. Return to your 1099-R entries by clicking Review to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R) in the Federal Wages & Income
2. Click on the pencil to the right of the first 1099-R
3. Click Continue through the entries you've made
4. "Let's get more information about your Required Minimum Distribution (RMD), enter the amount of your distribution as your RMD that was due by December 31, 2025, Continue
5. On the next screen, "How much of this distribution applied to your December 31, 2025 RMD?", select "The entire distribution applied...", Continue
6. When you reach, "Review your 1099-R summary, Continue (not the pencil)
7. When you reach, "Let's go over any required minimum distributions (RMD), Continue (not the pencil)