If we have never been asked questions about an RMD before, why are we now/ Is this something new?

[rx*75?yz]

For example last year we never had questions about RMD, since I have never heard of an RMD, I'm assuming it doesn't apply to us, is that right?

[macuser_22]

TurboTax has asks about RMD's for years if you are over 70 1/2 (now 72).

Virtually all pension plans, defined contribution plans, and annuities in existence today fall under section 401 of the tax code.

Required minimum distributions for defined benefit plans and annuity contracts all require RMD's after age 70 1/2 (72 after 2021).  If you receive periodic (monthly) payments from any pension plan you can be assured that the custodian of the plan is meeting the requirements so you can safely answer "yes" to the question.

The rules that the plan administrator must use to calculate the RMD as required by §401(a)(9) are defined in § 1.401(a)(9)-6) of the Internal Revenue Code (IRC).

The answer to the question does not go on your tax return, it is simply to make sure you do not owe any penalty for not taking the RMD or use it for an ineligible rollover.

The question is just to be sure that the requirement was met.

https://ttlc.intuit.com/replies/3302117

[DoninGA]

Is this income from a pension/retirement fund?  If so, the entire amount is an RMD.

If not from a pension or retirement fund, what account was the distribution from, Traditional IRA, Roth IRA, Annuity, etc.

[Opus 17 · Accepted solution]

An RMD is the required minimum amount you must withdraw from a tax-protected retirement account.  It is based on the account size and your life expectancy, and the point is that you must withdraw at least some money each year, you can't just leave it alone and save it for your kids.

An RMD is not a specific transaction, it is a dollar amount.  For example, if your required minimum amount (RMD) is $5000, you would meet that if you withdraw $5000 on December 30, but you would also meet it if you withdrew $500 per month over the year, or if you withdrew $10,000 in June.  

Money that is part of your minimum requirement can't be reinvested in another IRA or tax-protected account.  If you withdraw less than your required minimum, you have to pay a penalty.  

RMDs apply to most accounts when you turn 72, and to some inherited accounts.

If you have a pension that is paid out over your lifetime, it automatically meets the RMD rules, so answer yes, all the withdrawal is an RMD.  

For other kinds of retirement accounts, your broker can tell you what your RMD was for 2021 and if you withdrew enough.