Does the required-minimum-distribution rule upon reaching age 70.5 apply for fixed-payment pension plans? There is no balance pertaining to such pension plans.

[MichaelMc · Accepted solution]

Yes. The Required Minimum Distribution (RMD) rule does apply to defined benefit plans, such as traditional employer-provided pensions.

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.

In the case of pensions and annuities, the RMD rules are taken into account by the plan administrator when periodic payments are calculated.

Your 1099-R issuer is required to follow RMD rules and regulations, so if you received a distribution and you're at least age 70 1/2, you can be almost certain you received an RMD. Check with your plan administrator if you're still not sure.