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longdog
Returning Member

Is military retired pay distribution considered an RMD?

I already know it is considered a non-qualified plan.
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1 Reply
ThomasM125
Expert Alumni

Is military retired pay distribution considered an RMD?

Basically, a required minimum distribution (RMD) is a distribution you must take from an employer-sponsored retirement plan, a traditional IRA, SEP, or SIMPLE IRA once you have reached the age of 72, or face a tax penalty for not doing so.

 

So, the distribution you receive would typically be a minimum distribution that you would be required to take, meaning that you would normally have an option to not take the distribution, but face a tax penalty for doing so.

 

It sounds like the pension distribution you are getting is automatic based on your age and decision to retire, and in that case it would not be a RMD.

 

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