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New Member
posted Jun 6, 2019 3:38:48 AM

Why does Turbo Tax ask for so much info re: RMD from an IRA when the Federal Tax forms do not?

Makes completing Turbo Tax much harder.

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1 Best answer
Level 15
Jun 6, 2019 3:38:50 AM

Virtually all pension plans in existence today fall under section 401 of the tax code and they all require RMD's after age 70 1/2.  The question is just to be sure that the requirement was met.  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.

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

2 Replies
Level 15
Jun 6, 2019 3:38:50 AM

Virtually all pension plans in existence today fall under section 401 of the tax code and they all require RMD's after age 70 1/2.  The question is just to be sure that the requirement was met.  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.

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

Level 15
Jun 6, 2019 3:38:53 AM

To ask the right questions and to prepare your tax return properly, TurboTax needs to know two things about your distribution with regard to RMDs.  First, TurboTax needs to be able to determine how much of your distribution is available for rollover, in case you rolled any over; the portion that is RMD is not permitted to be rolled over.  Second, TurboTax needs to know if you satisfied all of your RMD requirements.  If you did not, TurboTax must include Form 5329 with your tax return to report and calculate the penalty on the excess accumulation in your retirement account.