1099-R Form Entry in Turbo Tax

[tcrizzi]

Due to be a death beneficiary, I received a 1099-R Form.   Turbo Tax Income entries being filled.  

Turbo Tax question - Was this withdrawal an RMD?   I don't know and wish to receive guidance on entry or ways to determine how I should be answering this question/entering responses into Turbo Tax.  I don't have a tax advisor and entering in 1099-R form entries using Turbo Tax Premier. 

Thank you. 

[mgarry3416]

Sorry for your loss.   Getting the information return F 1099R brought back memories of death.   By receiving the F1009R from the insurance company shows that you received a death benefit from something other than a life insurance policy such as an annuity product.  With something other than a life insurance product some of the proceeds are taxable to you. 

As for the RMD - the tax laws require tax advantage products such as annuity products or a IRA to have withdraws based on the age of the owner after your reach 70 1/2 to now 73 years old.  This distribution is the required minimum distribution or RMD.   So now everyone over 73 years old that has one of these tax advantage products is required to take such distribution based on an IRS table. 

In your case was the person you received the payment over 73 years old?  if so mark the box yes because the person if they were still alive would have been required to take a RMD.  If they were younger there would have been no requirement for a RMD.   Checking the box yes or no will not increase or decrease your taxes on the amount you received.

Hope this helps.  You may want to reach out to the insurance broker that handled the death claim if you need more information about the RMD.

[DianeW777]

Yes. All retirement accounts, even pensions and annuities, must meet the required minimum distribution (RMD) requirements. However, the way the pension plans meet the RMD requirements is by creating an annuity paid periodically.  

• You may simply select YES to the RMD question (Was this withdrawal RMD and all of this was RMD).  
• You will also be asked if the amount reported is paid periodically in equal amounts.  By selecting YES the RMD requirements are met and you may continue with the tax preparation.

The codes in box 7 will also dictate how the pension amount will be taxed.  It's likely your Dad has no remaining after-tax contributions, if he had any to start with. If there is an amount in box 2a then that will likely be the taxable amount on your return.

@tcrizzi