A
pension is usually a fixed payment over the life of a retiree. It is
the same as, and it satisfies, the "RMD" requirement to
withdraw sufficient amounts each year from retirement accounts.
For
pension distribution, the RMD is satisfied by simply receiving pension
periodically. Under the law it is a required distribution. Indicate that
it is all RMD and his entire RMD with respect to this pension. Therefore, you
may simply select "yes" to the
RMD question (Was this withdrawal RMD and ALL of this was
RMD). You will also be asked if the amount reported is paid
periodically in equal amounts. By selecting "yes" the RMD requirements are met and you may continue with
the tax preparation.
When
referring to a retirement account, RMD stands for minimum required
distributions, which are mandatory withdrawals you must take from certain
retirement accounts after you reach age 70 1/2. If you have reached this age
you would need to consult with the account provider to ensure, you are
receiving the proper amount to comply.
