rmd and single premium immediate annuity

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I have a single premium immediate annuity from which I get an automatic monthly withdrawal. I understand that RMD's do not apply to these types of annuities since the automatic yearly withdrawal is more than the RMD would be. I do not get any communication from the annuity company about a RMD. Turbo Tax wants to know what part of the withdrawal (if any) is part of the RMD. How am I supposed to answer this question? Is this a glitch in the TT software? Thanks

JulieSAnswer

Alumni - Intuit

No, this question is designed to help you identify whether you have an RMD and if you may owe a penalty.

You are correct, a non-qualified annuity (not in a retirement account) does not have an RMD. To satisfy the software simply say that none of the distribution is an RMD.

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JulieSAnswer

Alumni - Intuit

No, this question is designed to help you identify whether you have an RMD and if you may owe a penalty.

You are correct, a non-qualified annuity (not in a retirement account) does not have an RMD. To satisfy the software simply say that none of the distribution is an RMD.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

dmertz

Level 15

This has nothing to do with determining if you owe any penalty. This question in TurboTax only has to do with determining the amount that is ineligible for rollover; TurboTax is really asking, "How much of this distribution is ineligible for rollover?" Because this distribution is ineligible for rollover, indicate that it is all RMD. (Since you did not roll over any of this distribution, it really doesn't matter what answer you provide.)