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New Member

Is teacher retirement benefits subject to rmd

 
8 Replies
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New Member

Is teacher retirement benefits subject to rmd

Yes, but pension (defined benefit) distributions automatically factor in RMD.

TurboTax is just making sure that you're taking the Required Minimum Distribution for people over 70 1/2.

This can be an oversight for people withdrawing from defined contribution plans such as IRA and 401ks, but it's built in to your pension payout.

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Level 1

Is teacher retirement benefits subject to rmd

Turbo Tax for 2019 taxes asks some follow up questions about TRS.  Like, what did I do with this money?  Cashed out or re-invested?  Was all or part of this distribution an RMD?   What should I put?

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Level 1

Is teacher retirement benefits subject to rmd

Another question:  Turbo Tax ask if:

-  I received all the RMD for 2019

-  I did not receive all the RMD for 2019

-  I was not required to take an RMD for 2019

 

(I turned 70 1/2 February 2019)

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Expert Alumni

Is teacher retirement benefits subject to rmd

In your situation you cashed out the money.

 

Yes, you received all the RMD for 2019 and your distribution was all RMD.

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Level 1

Is teacher retirement benefits subject to rmd

So I should check "All of this distribution (from my TRS that is on my 1099-R) was an RMD"?

My broker said my TRS pension is not an RMD and that RMDs only come from IRAs (which I also have and am taking the correct amount of RMD from it.

Now I am really confused.  I do have a 1099-R for my TRS pension, but I don't understand how all of the money I get from TRS is considered RMD.

Need more information so I put the right thing on my taxes.

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Expert Alumni

Is teacher retirement benefits subject to rmd

In general, if you are taking distributions from your TRS pension you have received your RMD.  These are defined benefit accounts so unless you are not collecting, you will be receiving the RMD.  In general brokers do not give tax advice so...

 

See Retirement Topics — Required Minimum Distributions (RMDs)

 

@yesac2019

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New Member

Is teacher retirement benefits subject to rmd

It would be simpler and less confusing if Turbo tax just didn't ask this question.  I've never had problems in the previous years when they didn't ask it!

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Level 15

Is teacher retirement benefits subject to rmd

It doesn't know if it's a pension, 401K or IRA 1099R.  

Say all of it is the RMD.  If you are 70 1/2 it will ask you if it is the RMD.  Say yes.  Anything your pension pays you is considered to be the  RMD.

 

One reason it might ask is to determine if your 1099R is eligible to roll over to another qualified retirement account.  Which a RMD is not eligible.