topic Re: defined benefit pension Not handled correctly in Get your taxes done using TurboTax

defined benefit pension Not handled correctly

user17715354333 — Thu, 19 Feb 2026 21:20:22 GMT

using TurboTax 2025 Desktop Premier (Windows)

Defined benefit pension plans do NOT requireor use RMDs: distribution code, IRA/SEP/SIMPLE box unchecked, regular monthly pension, no account balance.

TurboTax is wrong (e.g., “treats this like deferred comp / IRA, demands RMD entry and threatens penalties even though pensions do not have RMDs” ).

Needs incrediblt convoluted workaround to trick TT into believing that the RMD was taken when twas nt. (entering Box 1 as RMD to clear bogus penalties).

Why this is incorrect tax law: pensions automatically satisfy RMD rules and do not require separate RMD calculation.

“This is a software defect in 1099‑R handling for defined benefit pensions, not a user error.”

Re: defined benefit pension Not handled correctly

dmertz — Fri, 20 Feb 2026 14:09:48 GMT

"Defined benefit pension plans do NOT requireor use RMDs:"

Actually, defined benefit plans are subject to the same minimum distribution requirements as other types of plans. It's just that the annual payments are calculated such that they satisfy the RMD requirement. Because you can't fail to satisfy the minimum required, you normally don't have to think about it. You can just tell TurboTax that the required amount is the amount that was distributed and that the enter amount distributed applied to the RMD.

Re: defined benefit pension Not handled correctly

user17715354333 — Fri, 20 Feb 2026 18:03:10 GMT

Yes, that's the workaround, but there are sill enough folks with defined benefit that they could/should retain the previous approach of having a separate category for them. As it is, t is unnecessarily confusing and, in my opinion, reflect either laziness or lack of common sense on intuit's part.

The app offers zero guidance on ths. I needed to resort to Gemini to discover the workaround so I assre you that it is far from intuit-ively obvious

But thanks for your reply. If I hadn't already unearthed this it would have saved me.