YES, YES, YES! Civilian Federal retirement plans (FERS, CSRS, TSP)
are considered "Qualified" plans, meaning they are subject to RMD. But the good news is that your monthly annuity payments are considered as meeting the RMD, so just answer "Yes" to all the RMD questions.
Federal pension from an IRA? Is the IRA/SEP/SIMPLE Box checked on your Form 1099-R? What is the distribution code shown in box 7?
If you have a pension, you simply check yes that it''s all an RMD. The fact that a pension, or even an IRA distribution, is an RMD does not change the taxability of it, it simply avoids a penalty for not taking an RMD.
All pension plans are required to pay RMDs, lust like an IRA. The only difference is that, if you take pension distributions according to the plan requirements in retirement, the tax law defines that as meeting the RMD requirements.
NO, NO, NO. You don't know what you are talking about. I am a federal retiree, with a pension. Of course it is taxable, but it isn't RMD. My pension has nothing to do with RMD, but turbo tax is treating it like RMD, resulting in a huge tax payment due from me.
If you have a federal pension then you do NOT have a pension from an IRA. Make sure the IRA/SEP/SIMPLE box is Not checked on the Form 1099-R. If you are over age 70 1/2 just answer yes to the RMD question.
Thank you. You are the only one of about 5 "experts" that has given me a helpful answer. I greatly appreciate your help.
This is my first time using Turbo Tax. Why does TurboTax ask a question where "yes" is always the reply? This is very confusing. Equally confusing are all the questions about how monthly pension is paid (it's paid monthly :)), hurricanes, disaster... I think that it would be a lot cleaner to separate pension payments from IRAs, etc., even if they are reported on the same form (if that is the case).
YES, YES, YES! Civilian Federal retirement plans (FERS, CSRS, TSP)
are considered "Qualified" plans, meaning they are subject to RMD. But the good news is that your monthly annuity payments are considered as meeting the RMD, so just answer "Yes" to all the RMD questions.
So in 2022 the IRS asks "how much" and "yes" just will not work. If anyone thinks they can get a RMD Amount from the US Government, Office of Personnel Management let me know. Otherwise I am inclined to enter the difference between Form 1099R Box 1, Gross Distribution, and 2a, Taxable Amount. I also think Turbo Tax should also know this information and automatically fill in the box.
Please be sure to select CSA if it is a Civil Service 1099-R when entering the 1099-R.
This is asked near the beginning of the entry screens.
The program will not ask questions about an IRA and will handle it as an annuity.
but why ask? makes this whole thread unnecessary (and TT users unhappy)
@HunterTheLittleGuy You have added to an old thread that has had no activity since early 2022--almost two years ago. What are you trying to do?
yes, two years old...clearly TT will not change but they need to . Not all that complicated. Simply recognize that retirees receiving monthly income from "defined benefit" pension plans (e.g. CSRS) do not have to answer (confusing and irritating) q's re: RMDs.
Agree, HuntertheLittleGuy.
However, Is it not possible that our CSA qualified plan payments might satisfy the RMD for not only our pension, but also for withrawls required of other qualified plans (IRA's)?
And when the choice is: All is an RMD or Part is RMD? Followed by requirement for a numerical amount, a "yes" does not compute.