topic RMDs in Get your taxes done using TurboTax

RMDs

Rambo70 — Mon, 03 Mar 2025 13:46:38 GMT

I have completed my Federal Income Return for tax year 2024, using TurboTax Deluxe. However, when I ran the final check, the program says I have several issues that need to be addressed. The program says I need to enter RMD amounts for the 3 pensions I have. I'm confused because I thought pensions Do Not follow RMD rules. So why is TurboTax requiring me to report RMDs for my 3 pensions.

One other point I want to state is as I stated above, I completed my taxes last week including the Final Check with the program saying everything is fine and no issues found. Last night I was planning on efiling my taxes but first I had to wait until the program installed new updates. Once the updates were uploaded, I opened up my return to run another Final Check before starting the Efiling process. Then the error messages appeared requiring me to enter RMD amounts for my pensions. I went from getting a refund, to owing money to the Federal government. Could there have been a glitch in the updates loaded last night or just a coincidence? Thank you.

Re: RMDs

ThomasM125 — Mon, 03 Mar 2025 19:10:03 GMT

All pensions have a required minimum distribution (RMD) when you reach a certain age, with the exception of a Roth retirement account. It sounds like you have a traditional type employer pension plan where the employer determines the amount of your distribution, in which case the amount you receive is the minimum required distribution. You just need to go back through your pension distribution entries and indicate that you received your RMD. It is likely you are being penalized for not taking your RMD's, so once you correct the pension distribution entries the tax due will likely revert back to the refund you saw before.

Re: RMDs

Rambo70 — Tue, 04 Mar 2025 00:28:03 GMT

Thank you for your reply and suggestion. So here's what I did. I went back and called up my 3 pensions that are in question, here. So when I got to the question: "RMD due by 12/31/2024," I entered the amount as it appeared in box 1 of the 1099R. The next question: I selected the choice that reads "Entire distribution applied to the 12/31/2024 RMD." I followed this process for the other 2 pensions. As a result of these instructions, I'm back to the same refund amount as before. So is this what you were suggestting I do?

I look forward to your response.

Again thank you for your time and guidance

Re: RMDs

DanaB27 — Tue, 04 Mar 2025 17:06:48 GMT

Yes, it seems you answered the RMD questions correctly and the penalty on Form 5329 was removed since you show a refund again.