Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
Billiam
Level 1

I do not understand RMD. My pension is from OPM. I have a CSRS retirement and NOT and IRA or anything like it. Why am I being fear pressured about IRS penalties if this does not apply to me?

 
1 Best answer

Accepted Solutions
DawnC
Employee Tax Expert

I do not understand RMD. My pension is from OPM. I have a CSRS retirement and NOT and IRA or anything like it. Why am I being fear pressured about IRS penalties if this does not apply to me?

All retirement accounts, even pensions, must meet the required minimum distribution requirements.  Since you are receiving monthly payments through the pension, you are meeting the RMD requirements.  The answer to that question is simply to make sure you do not owe any penalty for not taking the required minimum distribution.   Since pension plans fall under Sect. 401 and require an RMD after you are 70.5, you need to answer YES to the RMD question, and ALL to the next question about how much of it is RMD, so the TurboTax does not generate a penalty.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

4 Replies
DawnC
Employee Tax Expert

I do not understand RMD. My pension is from OPM. I have a CSRS retirement and NOT and IRA or anything like it. Why am I being fear pressured about IRS penalties if this does not apply to me?

All retirement accounts, even pensions, must meet the required minimum distribution requirements.  Since you are receiving monthly payments through the pension, you are meeting the RMD requirements.  The answer to that question is simply to make sure you do not owe any penalty for not taking the required minimum distribution.   Since pension plans fall under Sect. 401 and require an RMD after you are 70.5, you need to answer YES to the RMD question, and ALL to the next question about how much of it is RMD, so the TurboTax does not generate a penalty.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

Billiam
Level 1

I do not understand RMD. My pension is from OPM. I have a CSRS retirement and NOT and IRA or anything like it. Why am I being fear pressured about IRS penalties if this does not apply to me?

Thanks DawnC,

 

Maybe if the term "minimum distribution requirements" was elaborated upon or clarified by the IRS and in Turbo Tax, those of us new to this age mandated requirement might be better able to understand it, don't you agree? Once you explained that monthly payments are being made to me then it made sense. Unlike an IRA or 401K and so forth, we are payed the full monthly amount rather than making "withdrawals".  

 

BTW both my Federal and State returns were accepted by the IRS and MO Department of Revenue respectfully today!!

 

Bill

gabriela1993
Level 1

I do not understand RMD. My pension is from OPM. I have a CSRS retirement and NOT and IRA or anything like it. Why am I being fear pressured about IRS penalties if this does not apply to me?

Very help full. Thank you

32blackwhales
New Member

I do not understand RMD. My pension is from OPM. I have a CSRS retirement and NOT and IRA or anything like it. Why am I being fear pressured about IRS penalties if this does not apply to me?

Thank you! Your answer is very helpful.

Dynamic AdsDynamic Ads
Privacy Settings
v