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Pension payment does not need RMD. I am stuck?

Turbo tax is not helpful this year as it usually is.
Asking for RMD for pension plan does not make sense.
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3 Replies

Pension payment does not need RMD. I am stuck?

ALL pensions are RMD's.    The payer of the pension calculated the RMD amount and that is what is sent to you.

 

 

Virtually all pension plans, defined contribution plans, and annuities in existence today fall under section 401 of the tax code.

Required minimum distributions for defined benefit plans and annuity contracts all require RMD's after age 70 1/2.  If you receive periodic (monthly) payments from any pension plan you can be assured that the custodian of the plan is meeting the requirements so you can safely answer "yes" to the question.

The rules that the plan administrator must use to calculate the RMD as required by §401(a)(9) are defined in § 1.401(a)(9)-6) of the Internal Revenue Code (IRC).

The answer to the question does not go on your tax return, it is simply to make sure you do not owe any penalty for not taking the RMD or use it for an ineligible rollover.

The question is just to be sure that the requirement was met.


**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
ColeenD3
Expert Alumni

Pension payment does not need RMD. I am stuck?

Some people chose to take the RMD even though they were not required to. If you did not take it, simply say so.

Pension payment does not need RMD. I am stuck?


@ColeenD3 wrote:

Some people chose to take the RMD even though they were not required to. If you did not take it, simply say so.


The question was about a pension.   RMD's on pensions were not suspended.  Three types of RMD were suspended  but defined benefit plans and other pension annuities that include most pensions were not.

 

This is what the Act says.

 

  ``(I) Temporary waiver of minimum required 
                distribution.--
                          ``(i) In general.--The requirements of this 
                      paragraph shall not apply for calendar year 2020 
                      to--
                                    ``(I) a defined contribution plan 
                                which is described in this subsection or 
                                in section 403(a) or 403(b),
                                    ``(II) a defined contribution plan 
                                which is an eligible deferred 
                                compensation plan described in section 
                                457(b) but only if such plan is 
                                maintained by an employer described in 
                                section 457(e)(1)(A), or
                                    ``(III) an individual retirement 
                                plan.

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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