In Top Question box, Turbo Tax pro Ken says:
"Yes, but pension (defined benefit) distributions automatically factor in RMD.
TurboTax is just making sure that you're taking the Required Minimum Distribution for people over 70 1/2.
This can be an oversight for people withdrawing from defined contribution plans such as IRA and 401ks, but it's built in to your pension payout."
I still need a number to put in the box to be able to continue. Where do I get it?
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You need to take an RMD from each account you have.
For a defined pension, the amount of annual payment is automatically considered to be equal to your RMD, since it is a payment based on your investment or credits plus your expected life span. Use the annual income as the RMD amount.
For other accounts (IRS, 401k, etc.), the RMD must be calculated separately.
You need to take an RMD from each account you have.
For a defined pension, the amount of annual payment is automatically considered to be equal to your RMD, since it is a payment based on your investment or credits plus your expected life span. Use the annual income as the RMD amount.
For other accounts (IRS, 401k, etc.), the RMD must be calculated separately.
Virtually all pension plans, defined benefit plans, and annuities in existence today fall under section 401 of the tax code.
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.
The rules that the plan administrator must use to calculate the RMD as required by §401(a)(9) are defined in § 1.401(a)(9)-6) of the Internal Revenue Code (IRC).
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 or use it for an ineligible rollover.
The question is just to be sure that the requirement was met.
https://ttlc.intuit.com/replies/3302117
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