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Retired before age 70 1/2 from public retirement system. TT is asking if the distribution is an RMD. How should I respond to this question?
Both my husband and I retired before age 70 1/2 and began receiving monthly pension benefit payments.
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Retirement tax questions
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Retirement tax questions
Neither is an RMD for 2018.
RMDs are required once you reach age 70 1/2. The distribution is not considered one until then.
RMD stands for Required Minimum Distribution. It's the minimum amount of money you're required to take out of your retirement plan once you turn 70 1/2.
RMD rules apply to all employer-sponsored retirement plans such as pensions, profit-sharing, 401(k), 403(b), and 457(b) plans, as well as Traditional IRAs and IRA-based plans such as SEPs, SARSEPs, and SIMPLE IRAs. However, RMDs are not required for Roth IRAs while the owner is still alive.
Your 1099-R issuer is required to follow RMD rules and regulations, so if you received a distribution and you're at least 70 1/2 years young, you can be almost certain you received an RMD. Check with your plan administrator if you're still not sure.