Retirement tax questions


@pipta7-97 wrote:

I had a missed RMD from an IRA.  How do I enter this information in the Turbo Tax software?

 

In addition, I had two pensions.  Are they considered RMDs?  I receive monthly payments from these pensions. 


Yes, pensions are RMDs.   The total amount of monthly payments *is* the RMD.

 

First, take the missed IRA RMD ASAP so you can tell the IRS that is was taken late.

 

When entering the 1099-R for the pension, continue the interview after the 1099-R summary screen and it will ask if all RMD's were taken -  say no. 

 

See example on screenshots below.

 

That will add a 5329 form with a penalty waiver request that the IRA almost never denies if the missed RMD was taken.

 

Screen Shot 2020-03-08 at 1.47.59 PM.jpgScreen Shot 2020-03-08 at 1.48.14 PM.jpgScreen Shot 2020-03-08 at 1.48.46 PM.jpgScreen Shot 2020-03-08 at 1.50.39 PM.jpg

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**