Are company pension plans subject to RMD?

[DominicT]

If the Defined Benefit plan (company pension) does not have a total year end value why must i enter the part of my annual pension that is RMD when I fill in the Turbo Tax information.  There is no way to calculate it. Checking the box saying the entire amount is not 100% RMD is not true but the only way to get past that screen. 

[macuser_22]

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@DominicT wrote:

If the Defined Benefit plan (company pension) does not have a total year end value why must i enter the part of my annual pension that is RMD when I fill in the Turbo Tax information.  There is no way to calculate it. Checking the box saying the entire amount is not 100% RMD is not true but the only way to get past that screen. 

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By law, the amount of the years pension must be the RMD amount, no less and no more.

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 question is only to be sure that you did not try to make a prohibited rollover.

[charlotteharris]

How should I respond to the question about whether all or part of my pension fund distribution was RMD?

[ToddL99]

All of your pension income is a "Required Minimum Distribution".

All retirement accounts, even pensions, must meet the RMD requirements. 

However, the way pension plans meet the RMD requirements is by creating an annuity paid periodically (usually monthly).   

Technically, any monthly pension payment is considered a Required Minimum Distribution (RMD) and the entire amount is an RMD. That is how you need to answer the questions. When asked "Was this withdrawal an RMD?", the answer is "Yes", then check "All of this distribution is an RMD." 

(Be sure that the IRA /SEP/SIMPLE box is not checked in your data entry). 

[brianandkarena]

My husband has a pension and social security but he doesn’t have a 401k plan.  He turned 73 last year and I thought it was only for retirement plans but not pension plans when he receives the same amount each month. 

[MarilynG1]

Yes, pension plans are included for RMD, as they are an employer-sponsored retirement plan.

When entering your 1099-R reporting the amount of your husband's annual pension distribution amount, answer the question in TurboTax 'Was this withdrawal an RMD?' as 'Yes' and then check, 'All of this distribution is RMD'.

Click this link for more detailed info on What is RMD?

@brianandkarena