Is a monthly pension from a 1099r considered a rmd?

[nh3380]

ref case # xxxxxxxxx I was told that our monthly pensions were an rmd is this true?

[macuser_22]

Virtually all pension plans in existence today fall under section 401 of the tax code and they all require RMD's after age 70 1/2.  The question is just to be sure that the requirement was met.  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 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.

https://ttlc.intuit.com/replies/3302117

[Gordon7]

The 2019 edition of Turbo Tax now asks if some or all of an IMRF pension is RMD.  If the answer is yes then the 2019 edition asks how much is RMD.  How can I learn the correct answer?

[DoninGA]

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@Gordon7 wrote:

The 2019 edition of Turbo Tax now asks if some or all of an IMRF pension is RMD.  If the answer is yes then the 2019 edition asks how much is RMD.  How can I learn the correct answer?

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

[Gordon7]

Thanks.  It is helpful to know that after 70 1/2 all monthly pension payments are considered RMD payments.

[sc3p]

I have been receiving several monthly retirement pension distributions and two of my pension agents will not answer this tax question:  My 2019 1099R now asks for an amount for the RMD. I was able to decipher some of these RMD amounts several distributions by looking up the Fair Market Value and doing the math. However, I don't get any paperwork with other pensions to be able to figure out the "amount" of the RMD, be ti full or partial. Should I leave this blank?

[DoninGA]

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@sc3p wrote:

I have been receiving several monthly retirement pension distributions and two of my pension agents will not answer this tax question:  My 2019 1099R now asks for an amount for the RMD. I was able to decipher some of these RMD amounts several distributions by looking up the Fair Market Value and doing the math. However, I don't get any paperwork with other pensions to be able to figure out the "amount" of the RMD, be ti full or partial. Should I leave this blank?

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If you are age 70 1/2 or older than all of your pension payment is a RMD.

[macuser_22]

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@sc3p wrote:

I have been receiving several monthly retirement pension distributions and two of my pension agents will not answer this tax question:  My 2019 1099R now asks for an amount for the RMD. I was able to decipher some of these RMD amounts several distributions by looking up the Fair Market Value and doing the math. However, I don't get any paperwork with other pensions to be able to figure out the "amount" of the RMD, be ti full or partial. Should I leave this blank?

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*You* do not calculate the RMD.  Per the tax law, the pension payments that you receive *are* the RMD.   They can never be more (or less) than the RMD.   The pension plan trustee (or rather their computer) calculates and sends you the correct RMD amount which is your pension.

This is defined in the Internal Revenue Code:

https://www.law.cornell.edu/cfr/text/26/1.401(a)(9)-6

26 CFR § 1.401(a)(9)-6 - Required minimum distributions for defined benefit plans and annuity contracts.

[sc3p]

Thank you, very helpful. None of the agents for the several 1099r distributions, as well as pensions could answer that simple question.

[macuser_22]

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@sc3p wrote:

Thank you, very helpful. None of the agents for the several 1099r distributions, as well as pensions could answer that simple question.

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90% of agents have never heard of a RMD for a pension because it is automatic by the plan trustee and the agents have nothing to do with the payments.

TurboTax asks the question for anyone over age 70 1/2 because many types of plans can have the same 1099-R codes so there is no way to know if it is a periodic pension distribution  or some other type of account.

[DaveCrook]

I have been retired for 10 years and began drawing on my pensions since age 65. I receive monthly payments from my pensions. Since I am now 72 when I enter theses 1099-Rs on my tax software do I classify the total payout of each as RMDs?

Thank you...

Dave C.

[Opus 17]

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@DaveCrook wrote:

I have been retired for 10 years and began drawing on my pensions since age 65. I receive monthly payments from my pensions. Since I am now 72 when I enter theses 1099-Rs on my tax software do I classify the total payout of each as RMDs?

Thank you...

Dave C.

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A traditional pension meets the rules of an RMD. 

[cydb35]

I was reading through this information trying to find an answer to my question and thought maybe I can ask here..

I received a pension payout for a retirement plan that belonged to a deceased member of my family.  Part of this was RMD, part was not (as far as I can tell, 2 checks were sent).  I am reporting the total amount listed on the 1099-R but then the question pops up, how much of this was RMD... do I put in the gross amount or the post tax amount I received in the check?  Does it matter?

Thanks for any help!

[Opus 17]

For 2020, the RMD requirement is suspended, so it can't hurt you if you say no, at least for this year.

In general, the "required minimum distribution" is a dollar amount, not a specific transaction.  If you had an IRA with a $5000 RMA requirement, it wouldn't matter if you withdrew $5000 all at once, or in multiple transactions.  You meet the minimum withdrawal requirements as long as your total withdrawals are at least as much or more than the requirement.  If you took out more than the requirement, then you met the requirement.  And since a pension automatically meets the minimum, and you took out more than the minimum, you would answer Yes for this year. 

[cydb35]

Ok.  So I checked yes and it asks for the RMD amount, what do I put in the box? Let's say the total gross is 1200 from the 1099-R... the gross RMD was like 500 but after tax its 300.  Is it ok the RMD is less than the total gross distribution?  Thanks 🙂