My pension plan is not an IRA

The IRA box is not checked on my 1099R as it is a pension plan, not an IRA. I assume that it's a "qualified plan". Yet, Turbo Tax is saying I need to pay a RMD. How do I get past this?

1654

Level 15

Jul 12, 2020 7:34:30 AM

If you are age 70 1/2 or older in 2019 then all of your pension income is an RMD.

Returning Member

Jul 12, 2020 7:48:44 AM

First, thank you VERY much for your help!! I have struggled over this a long time!

Yes I am over that age. So how do I answer the question from Turbo Tax: "Was this withdrawal an RMD for 2019?". The answers that I can choose from are:

1) Yes, all or some of this withdrawal was an RMD

2) No, none of this withdrawal was an RMD

If I choose #1 ... the next screen asks "Tell us how much of the $_______ MY NAME received is applies to the RMD that needed to be taken out. The options for answers are:

1) All of this distribution was an RMD

2) Part of this distribution was an RMD

BASED on your reply, I assume that I check #1 for both questions. Is that correct?

Level 15

Jul 12, 2020 7:50:12 AM

@rlseks1967 Yes, you are correct.

Returning Member

Jul 12, 2020 7:53:49 AM

Thank you!!!

Level 15

Jul 12, 2020 9:13:21 AM

The concept of an RMD is to make you withdraw money from your tax-privileged retirement account so that you can’t use it purely as a way to pass tax-free assets to your children. The amount of the RMD is based on the size of the account and your life expectancy. Since a traditional pension benefit is also based on your life expectancy, traditional pension payments automatically meet the rules for an RMD.

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My pension plan is not an IRA