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New Member
posted Mar 22, 2023 3:57:19 PM

survivor pension plan

I have a survivor pension from my husbands company ,in box 7 it is shown as a death distribution code but the gov wants me to pay a rmd on it. it is a monthly amount which never changes and isn't a 401k 

 

 

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3 Replies
Expert Alumni
Mar 22, 2023 4:39:28 PM

If there were monthly benefits, most likely the RMD has been met and you can answer the question with a yes that the RMD has been met.  TurboTax asks the question about taking a RMD.  TurboTax will give you the option for indicating that you did not need to take an RMD.  

 

Below is a list of plans that require RMDs.

These minimum distribution rules apply to:

  • traditional IRAs
  • SEP IRAs
  • SIMPLE IRAs
  • 401(k) plans
  • 403(b) plans
  • 457(b) plans
  • profit-sharing plans
  • other defined contribution plans

 

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.

 

If an employee dies after attaining his RBD, then there must have been an RMD in the year of death. If the employee took the RMD before he died, nothing further needs to be distributed that year. If the employee did not take the RMD before he died, then the RMD needs to be paid to the beneficiary before the year is up.

 

 

 

 

Level 15
Mar 22, 2023 5:30:19 PM

There is no such thing as “paying an RMD“ and the government will doesn’t want you to do anything.

An RMD is the required minimum amount that you must withdraw from certain qualified retirement plans each year. The reason is to prevent taxpayers from accumulating large tax deferred retirement accounts, which they can pass on to their children without paying taxes. So, you have to withdraw a minimum amount every year and pay taxes on it, based on your life expectancy. TurboTax needs to know whether any part of your retirement income is an RMD, because there are certain things you can’t do with an RMD, such as roll it over into a different  retirement account.

 

Because a lifetime pension payout is based on your life expectancy, it automatically meets the conditions to be considered an RMD. If you have a traditional fixed payment pension, you should indicate that yes, it is an RMD.  

Level 15
Mar 22, 2023 5:35:12 PM

Say all of it is the RMD.  If you are 72  it will ask you if it is the RMD.  Say yes.  Anything your pension pays you is considered to be the  RMD.  Traditional pensions automatically fulfill the rules of an RMD.