On a company monthly pension, why does turbo tax ask if the total yearly amount was your entire RMD, was a partial part of your RMD, or was none of RMD?

Forum|Forum|4 years ago
February 9, 2022
5 replies
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TurboTax Deluxe Online

VolvoGirl

Level 15

Say all of it is the RMD. If you are 70 1/2 it will ask you if it is the RMD. Say yes. Anything your pension pays you is considered to be the RMD. Traditional pensions automatically fulfill the rules of an RMD.

joerjacksonAuthor

Level 2

Thanks

DaveF1006

Level 15

@joerjackson The reason why it asks you this question is, If you have an RMD requirement this year, Turbo Tax wants to know if this distribution satisfied your entire RMD requirement this year or only partially. This is important because if it is only a partial distribution, then a 50% tax penalty will be assessed against the amount that should have been taken but wasn't.

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dmertz

Level 15

When TurboTax asks how much of the distribution is RMD, what TurboTax is really asking is how much of this distribution is not eligible for rollover (in case you subsequently try to report some of this distribution as having been rolled over). Pension payments are not eligible for rollover, so all of this distribution is ineligible for rollover.