Solved: Re: Required Minimum Distribution?
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Returning Member

Required Minimum Distribution?

Hello, I'm new here. Trying to file my mom's taxes and stumbled upon a new question I'm not used to seeing. My mom receives social security benefits along with a pension that she inherited from my dad upon his death in 2015. TurboTax is now asking me if the income she received in 2018 and 2019 from the pension meets the Required Minimum Distribution (RMD). I called the fund that distributes the payments and they had no idea what that was and were just giving me random statements that led to no true answer (yes or no). They simply stated that because she inherited the fund, she's only entitled to 50% of the total fund, and the monthly payment she receives will continue till for the remainder of her life. Is there anything on the 1099-R form that can shed some light to this? 

 

Box 7 has a distribution code of 4 which is due to my dad's passing and the IRA/SEP/SIMPLE box is not checked so my understanding is that this fund is not from a traditional IRA, SEP, or SIMPLE distribution - does that exclude us from an RMD? 

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Level 15

Required Minimum Distribution?

Just say it is all a RMD.

 

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 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.

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

**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.**

View solution in original post

3 Replies
Highlighted
Level 15

Required Minimum Distribution?

Just say it is all a RMD.

 

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 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.

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

**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.**

View solution in original post

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Returning Member

Required Minimum Distribution?

Thank you! 

 

One more question if I may. For "Source of Distribution", the first option states "Military pension or survivor benefits". Does this present 2 military-specific options,  "Military Pension" or "Military survivor benefits" or when it references survivor benefits, it's referring to anything inherited and not necessarily military-related? I selected "None of the above" last year but was contemplating if it should have been option one since these are technically survivor benefits. Any clarification is appreciated.

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Expert Alumni

Required Minimum Distribution?

If it is not military related then you would answer "None of the above".

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