turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

blkgolfer
New Member

Why does Turbo Tax require to state that a pension income amount is a required minimum distribution when it is not.

My pensions are not RMD related, so Turbo Tax should not ask that it show it is a RMD.  What is the options.
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
ToddL
New Member

Why does Turbo Tax require to state that a pension income amount is a required minimum distribution when it is not.

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. Therefore, you may simply select "yes" to the RMD 1st question.  You will also be asked if the amount reported is paid periodically in equal amounts.  By selecting "yes" the RMD requirements are met and you may continue with the tax preparation.

View solution in original post

1 Reply
ToddL
New Member

Why does Turbo Tax require to state that a pension income amount is a required minimum distribution when it is not.

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. Therefore, you may simply select "yes" to the RMD 1st question.  You will also be asked if the amount reported is paid periodically in equal amounts.  By selecting "yes" the RMD requirements are met and you may continue with the tax preparation.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies