Handling Defined benefit pension qualified plan RMD questions in TurboTax Online

[BobRay]

Box 1 and box 2a of my 1099-R are different.  It's not a 401(b), it's another qualified plan.

I shouldn't have to answer RMD questions for this, but TT makes me do it.

1. Which box (1 or 2a) should I use for the RMD amount?

2. How do I answer the question about whether the entire distribution applied to the RMD?

3. How do I answer the question: Was the total amount shown in the form the amount you paid tax on?

I keep running into a form that asks for complex Annuity questions that I don't have the answers to. It's not an annuity but I can't get past that form.

[SteamTrain · Accepted solution]

@BobRay 

The only time a Pension amount is not an RMD (that I can think of) is if they allow a distribution & rollover to another retirement account...in addition to the regular RMD.  But most don't allow that.

1)  Box 1 is the RMD amount

2)  The entire amount is the RMD

3)   YES to that total...

The #3 question is the real problem...You say YES and then box 2a should be used  (It was for me in a similar situation)...but, after you run thru ALL the follow-up questions, check your line 5a and 5b on your form 1040 to make sure 2a was used .

Have asked TTX to modify that #3 question to say...is the total in box 2a the amount that should be taxed....because that is what ends up being used if you say YES....and many folks are being mislead by that question.

[BobRay]

Thanks! It's beyond confusing. I think it's downright wrong. If I'm understanding you, I'm forced to lie on question 3, since the total amount I've given for my RMD is actually not what I paid tax on.

I still don't see why TT doesn't ask some simple question up front like,

"Is this 1099-R for regular payments from a defined benefit pension? "  and skip the questions that are irrelevant if you say "Yes."

[SteamTrain]

@BobRay 

Yeah, they could shorten things for defined benefit plans.

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Anyhow...It appears they didn't change the operation of the question. BUT the screwed up the text making it massively misleading for the users:

See below the 2024 question, vs the 2025 misleading question (with the changes I want but so far ignored):

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2024

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2025