RMD related to pension payments on 1099-R

[Swissguy48]

I receive monthly pension payments from 3 employer sponsored plans.  Two of those plans show 7 in box 7 and I have no issues in TurboTax.  However, one plan shows 2 in that box because I began distributions at age 59.  I contacted the trustee, and they said they can't change that even though I'm 76 now.

Evidently that one difference is creating my problem in TurboTax.  As in prior years I put down the entire amount as my RMD but I get an error message that says there is no RMD.  I know that is incorrect, so I override that and get questions concerning "correction period".  What am I supposed to do?

[JohnB5677]

You don't have to pay a penalty on a pension, even if you do have a code 2 in box 7.

There are two key entries that will successfully clear the penalty.

• Post the 1099-R exactly as it is 
• Continue through the Interview
• When it asks for an RMD enter -0-
• This should reduce your tax due.
• Further in the interview, indicate that you received regular monthly payments.

[Swissguy48]

Thank you JohnB5677!  My entry appears to have worked with no issues as I didn't receive an error message, and my tax liability is as expected.