Required minimum distribution
I have listed two retirement incomes including the taxes paid on the Turbo tax preparation form. . The first retirement income is a traditional pension plan from which I receive a monthly pension payment (with federal tax deducted), and the second retirement income is a required minimum deduction payment to me (RMD) from my 401K with the appropriate tax withheld. I did NOT take nor receive a RMD under the "traditional" pension plan, because I was told by the Pension Plan Administrator that this monthly payment to me does not qualify for a RMD. THEREFORE, I was confused by the questions under the Turbo Tax retirement section. For example, I did answer "no" RMD had been taken out of the traditional pension. And your software "warned" me about a 50% penalty for not taking out the RMD. My QUESTION TO YOU: does Turbo Tax 'automatically" add the RMD penalty fee in its calculation of my taxes owed? And, if Turbo automatically adds this penalty to the taxes owed, would it show up in the Turbo summary sheet under the caption: "Penalty / Interest" due? Thank you.
