topic Why am I being asked about an MRD when I entered a pension amount? in Retirement tax questions

Why am I being asked about an MRD when I entered a pension amount?

rilikoenigs — Wed, 29 Jan 2020 15:41:45 GMT

Re: Why am I being asked about an MRD when I entered a pension amount?

macuser_22 — Wed, 29 Jan 2020 15:47:00 GMT

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

Re: Why am I being asked about an MRD when I entered a pension amount?

G-B — Tue, 24 Mar 2020 01:03:51 GMT

The question becomes a review loop if answered. The program is flawed because if you are 71 1/2 and still working (even 1 day a week is sufficient), you do not have to take anything out, but this program assumes that if you are over that age, you’re retired (not working at all). Was a real pain.

Re: Why am I being asked about an MRD when I entered a pension amount?

macuser_22 — Tue, 24 Mar 2020 01:24:33 GMT

@G-B wrote:

The question becomes a review loop if answered. The program is flawed because if you are 71 1/2 and still working (even 1 day a week is sufficient), you do not have to take anything out, but this program assumes that if you are over that age, you’re retired (not working at all). Was a real pain.

Depends - if you are working for an employer and do not have at least a 5% interest in the company then you do not have to take RMD's from that employers 401(k) plan. That does not apply to IRA's or other pension plans. If you qualify then simply answer the question that a RMD is not required.

I do not see a problem or issue with TurboTax. What is the problem?