Turbotax 2025 expects an RMD from my pension (and calculates an RMD penalty for me).

[Waiting2026]

The promised code for "Retirement Plans and Social Security" has been delivered FINALLY in Turbotax 2025.  For me it brings a new problem I have not seen in past years. Turbotax shows that I owe a penalty due to not taking an RMD from my pension.  This shows up on this forum a lot in the March 2025 timeframe (sherertzg is an example).  On 3/1/2025 xmasbaby0 suggests "If you entered a 1099R for a pension you just need to say it was all an RMD" which makes sense in a way.

But how do we do that in Turbortax 2025?  One would think Turbortax could "see" the difference between a pension and an IRA account.

I did not have this problem using Turbotax 2024 last year if memory serves me correct.

[JohnB5677]

The interview address all of these issues.

• You are asked if there were regular payments, and the timing of them.
• This would indicate a pension and it would not require an RMD.
• There is also a question that asks if the IRA box is checked in your 1099-R.
• If it is, it may be subject to RMDs
• Finally, there is a final question that asks how much of this payment was an RMD.

This format may have some changes from 2024, but the questions are essentially the same.

[Waiting2026]

JohnB5677 - thank you for the quick reply.  To reply to your points...

Regular payments and timing:  Replied on Annuity Info screen that there were periodic payments (Yes).  In my case monthly as one would expect for a pension.

IRA/SEP/SIMPLE box checked?  Left blank

The question "RMD due" I answered with "0" (zero)

I did answer it was a qualified Plan and not a 403(b).

I don't think my answers are incorrect and indicating a need for an RMD.  Leaves me incredibly confused.

[JohnB5677]

Please clarify the RMD penalty.

• What platform are you using?
  • Online
  • Desktop
• What version?
• Did you have multiple 1099-Rs?
• Are any of them IRAs?
• How did you identify the RMD penalty
  • Stated it in the program
  • Saw it on my 1040
  • Identified on a different tax schedule
  • Other (explain)

[VolvoGirl]

Try entering the amount in box 1 for the RMD question for pensions  It's always been that way when entering a pension.  

Update.  I found my note.....

For a pension, it's whatever they send you. Say all of it is the RMD. If you have a RMD requirement it will ask you if it is the RMD. Say yes and enter the amount as the RMD amount. The pension doesn't need to calculate any RMD. Anything your pension pays you is considered to be the RMD. Traditional pensions automatically fulfill the rules of an RMD. So just enter the same amount in box 1 for the RMD for each 1099R.

[Waiting2026]

Thanks for getting back to me!  Too bad we can't share screen prints.

Platform:  iMac desktop running Sequoia15.7.3.  Turbo tax Desktop Deluxe 2025, Federal & State Tax [PC/Mac Online code] thru Amazon.  Install updates to turbotax at every use.  Do not see any version/release notes. Filing joint return.  We both have pensions and IRAs.

Yes, multiple 1099-Rs: three showing distributions - one each from IRAs and one showing distribution to charity (QCD which is not taxable) from IRA. One each showing our monthly pensions payouts.  Total of 5 that show on screen "Your 1099-R summary"

The screen "IRA Contributions Results" screen has a line item "Tax on excess accumulations in retirement account" showing the dollars for a tax penalty.   Is there another place/screen that might flag this?  This is what I identify as the "RMD penalty."

The screen "Retirement income results" shows "Traditional and Roth IRA distributions" which matches my own accounting.  "Pension and annuity distributions" also shows the totals my records show.

I am certain that the RMDs for both our our IRAs (not including the pensions) exceed the required annual mark.

[Waiting2026]

I have not seen where I could "enter the amount in box 1 for the RMD question for pensions" in TurboTax 2025.  I cannot find a "box 1" or a specific question on "pension."

[VolvoGirl]

Box 1 is on the 1099R.   

[Waiting2026]

I appreciate the comments and suggestions.  It is a challenge to describe what the problem is.  The big assumption is that we are looking at the same system/platform.  I suggest the input - the 1099-R - would be the same since it is a well defined IRS document.

Something is not right in Turbo Tax 2025.  I am going to state the obvious (to me) - a pension distribution does not require an RMD.  Pensions do not have RMDs.  On a monthly basis, in my case, I receive a deposit into my personal bank account.  After twelve months my pension is paid out in full and I pay taxes on that.

Including this pension into the inputs on the "Your 1099-R summary" screen, Turbotax 2025 shows I owe $1,827.  If I delete (using the trash can icon) this 1099-R as an input, I then show a refund $3,703.  The values are not important.  What is important is the difference between the refund and amount owed.  

I am almost finished capturing each screen in sequence showing my specific inputs (excluding personal info); each screen is a pdf.  I could certainly share these.  My other alternative is to say "screw it" and get H&R Block for $36.99 on Amazon.  I have used Turbo Tax for years; this year that does not make sense.

Thanks for reading!

[VolvoGirl]

You can post screen shots.  Click on the Camera Icon above  the reply box in the format line.  Did you try just putting in the same amount as 1099R box 1 into the RMD question?  Just do it.  It won't affect anything else.    

[Waiting2026]

Thank you for your patience....   Not sure if this is the spot to add that.  If it is, are you suggesting I enter the full amount of my pension 1099-R distribution?  And thanks for how to upload a screenshot!

[Waiting2026]

The next day.  With the snow (predicted 6 -10 inches but just snow; no ice) why not deal with TurboTax 2025?

I gave up on Turbo Tax and its inability to determine RMDs on IRA distributions versus pensions.  Spent $36.99 on H&R Block.  Just finished my data entry and the result is a refund within 3% of my Excel spreadsheet.

My thanks to those who offered suggestions.  Intuit spent weeks in January on their code and IMHO still don't have it correct.  We'll see how my refund request goes.

[Waiting2026]

No. I did not figure out how to tell Turbo Tax 2025 the difference between an IRA and a pension distribution. Did not have this problem in past years with Turbo Tax.

Solution was H&R Block. Their software was much clearer. Worked like a champ.

[x020574]

I have a small monthly pension, on the 1099r - the distribution code is 7 but unlike all of my other 1099r the IRA/SEP/Simple is left blank. Turbo may also ask if this is a same amount you get regular period payments (as most pension plans do). This indicates these pension plans factor in the RMD. Hence, why they don't flag put a  'x' in the 1099r IRA/SEP/Simple box. The questions from TurboTax re how often you get them on a regular basis is a safety check for turbo. Put the fin the FULL amount of the pension paid per 2025 and move on. If you still feel uncomfortable, you should contact you pension plan and inquire what was the RMD for that year. also review your different 1099r to see which have IRA/SEP/Simple boxes checked. Hope this sets your mind at ease.

[Waiting2026]

Thank you for the suggestions.  I found an easier solution to my problems.

I used H&R Block software and did not see this problem.  eFiled on 1/26.  Refund deposited 2/4.