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Level 1
posted Jan 23, 2020 6:17:45 PM

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?

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1 Best answer
Expert Alumni
Jan 23, 2020 6:34:24 PM

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.  

6 Replies
Expert Alumni
Jan 23, 2020 6:34:24 PM

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.  

Level 1
Jan 27, 2020 4:23:29 PM

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

Level 1
Feb 1, 2020 5:20:55 AM

Very help full. Thank you

New Member
Mar 3, 2020 6:35:52 AM

Thank you! Your answer is very helpful.

Level 1
Feb 21, 2025 1:05:28 PM

The next field requires a number.  "ALL" is not an acceptable answer

do I put the total amount of the past year distribution????

Level 15
Feb 21, 2025 1:06:39 PM


@vpnewton wrote:

The next field requires a number.  "ALL" is not an acceptable answer

do I put the total amount of the past year distribution????


Yes, you enter the total distribution received for 2024.