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wandalmay
New Member

This money came from a State retirement plan and the RMD doesn't make sense.

MAIN QUESTION: This money came from a State retirement plan and the RMD doesn't make sense. How do I answer it? It seems like this doesn't apply.

About This Retirement Account
State of Oregon

OBSERVATION: Also, the page I clipped below has "State of Oregon, but then cites "Illinois" as the distribution source. Hmmm!

Where Is This Distribution From?
State of Oregon
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1 Best answer

Accepted Solutions

This money came from a State retirement plan and the RMD doesn't make sense.

Once you get to age 70.5, the software will ask about receiving the RMD for any standard 1099-R...pension or IRA.

Yes, a pension does have an RMD, you just have no control over it.  The pension plan is required to meet certain Federal distribution requirements.....but that's between the Pension administrators ad the Feds..

....was your Oregon pension payout an RMD?   YES it was ...and all of it was an RMD, and you received all of the RMD from that 1099-R.  The only exception where it might not be is if you take a lump sum to roll into another account and terminate your Pension plan...but most pension plans don't allow that once they start their monthly payments

(If you have an IRA account, or 401k account, those RMDs have to be handled by you separately)

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

View solution in original post

3 Replies

This money came from a State retirement plan and the RMD doesn't make sense.

Once you get to age 70.5, the software will ask about receiving the RMD for any standard 1099-R...pension or IRA.

Yes, a pension does have an RMD, you just have no control over it.  The pension plan is required to meet certain Federal distribution requirements.....but that's between the Pension administrators ad the Feds..

....was your Oregon pension payout an RMD?   YES it was ...and all of it was an RMD, and you received all of the RMD from that 1099-R.  The only exception where it might not be is if you take a lump sum to roll into another account and terminate your Pension plan...but most pension plans don't allow that once they start their monthly payments

(If you have an IRA account, or 401k account, those RMDs have to be handled by you separately)

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

This money came from a State retirement plan and the RMD doesn't make sense.

Not sure what the Illinois thing is...unless you moved to Illinois and are living there?
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

This money came from a State retirement plan and the RMD doesn't make sense.

IF you are living in Illinois, then the distribution is potentially taxable in Illinois. having earned the pension in Oregon is immaterial if you weer living in Illinois in 2017.
 
 (If you moved to Illinois during 2017...you'll have a bunch of income allocations to do when you do the part-year Illinois tax return...but that 's later, and only after every scrap of the Federal tax return entries are complete and error checked)
 
 ...your choices on that page are only "Military" or "Other Distribution"
 
 ..........since it's not Military, you only have the other choice.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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