1099-R Teacher Retirement RMD Trouble in TurboTax

[ColonelBevo]

I have a regular teacher retirement plan with monthly payments.  When I try to enter the data from my 1099-R it keeps asking me about age, RMD, etc.  This is not a plan that requires an RMD.  How do I just get TurboTax to accept the actual numbers from the 1099-R without trying to tax me for not withdrawing the RMD?  There is no RMD required for this retirement plan.

[VolvoGirl]

If you are 70 1/2 or older it will ask if you took the RMD. Say yes for pensions. Anything your pension pays you is considered to be the RMD.

[ColonelBevo]

Wrong answer.  This was not a contribution plan.  My father retired as a university professor in Louisiana.  He took less monthly payments while still living so my mother could continue to get monthly payments after his death.  No contributions were made.  He drew this monthly payment until his death in 2012.  Since then she has received monthly payments less than what they received while he was living.  There is no RMD required because it is not an IRA type plan.

TurboTax just won't accept the actual numbers from the 1099-R without wanting RMD information.  She has never had to take out an RMD because there is no actual cash value in this plan so you couldn't even calculate an RMD if you had to.

Anyone got a helpful answer?

[ColonelBevo]

She is 98 and has dementia.  I, as the only child, am doing her return for her.  So it's not my plan or my tax return.

[macuser_22 · Accepted solution]

Virtually all pension plans, defined contribution plans, and annuities in existence today fall under section 401 of the tax code.

Required minimum distributions for defined benefit plans and annuity contracts all require RMD's after age 70 1/2.  If you receive periodic (monthly) payments from any pension plan you can be assured that the custodian of the plan is meeting the requirements so you can safely answer "yes" to the question.

The rules that the plan administrator must use to calculate the RMD as required by §401(a)(9) are defined in § 1.401(a)(9)-6) of the Internal Revenue Code (IRC).

The answer to the question does not go on your tax return, it is simply to make sure you do not owe any penalty for not taking the RMD or use it for an ineligible rollover.

The question is just to be sure that the requirement was met.

https://ttlc.intuit.com/replies/3302117

[ColonelBevo]

Thanks so much.  I'll plug in the numbers and click yes to RMD and see how it goes.

I guess the original answer was correct.  You just gave a much more detailed answer with explanations.

Thanks again.

[gabe24]

Thank you...……...I had the same question and you nailed it.  Much appreciated.  dg