RMD

Forum|Forum|1 year ago
February 7, 2025
2 replies
22 views

TurboTax keeps trying to make my fed gov't pension an RMD. It is not. It's just a regular pension.

But the RMD from my actual gov't 401k for 2024 I did take it but it won't recognize it. I turned 73 this year so this was the first year that I was required to take it. I took the correct amount, I could have waited until 2025 and would have had to take TWO - one for 2024 and one for 2025.

annoying, I've tried several times and it keeps telling me the figures I entered for my gov't pension are wrong. They are not. I rechecked several times

it's cheating me out of $6k in fed refunds. i Did the return on two other software pkgs and didn't have this problem.

So I guess I won't be using TurboTax this year

TurboTax Deluxe Online

xmasbaby0

Level 15

When you enter a 1099R for a pension you just have to tell the software it was all an RMD. No other fancy footwork or calculations. Just say it was all RMD.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

thelordswayAuthor

Level 2

No, I get a federal pension. It keeps trying to tell me the federal pension is my RMD.

I think it got confused, I turned 73 after April 2023.. So 2024 was the first year I had to take an RMD - or I had the option of waiting until this year (2025) and taking two (one for 2024 and one for 2025). So I took the one I was supposed to take for 2024, rather than have two in 2025. But it seems to think that I missed taking it last year - their software even references age 70.5 (that was before they changed the law to 73 at the age you had to start taking it They havent updated their software to keep up with the law. I clearly indicated that the actual RMD was an RMD - although I didn't take a complete distribution. I took what I was supposed to for 2024

I appreciate your trying to help - but that's not it.

DaveF1006

Level 15

If you turned 73 during a year, you need to take your first Required Minimum Distribution (RMD) by April 1 of the following year. For example, if you turned 73 in 2023, your first RMD would be due by April 1, 2024. However, many people choose to take their first RMD by December 31 of the year they turn 73 to avoid having to take two RMDs in the same year.

If you wait until April 1, 2024 of the following year to take your first RMD, you will also need to take your second RMD by December 31, 2024. This means you would have to take two distributions in one year, which could result in a higher tax bill.

Please read the link I provided.

Retirement plan and IRA required minimum distributions FAQs

@thelordsway

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measly

Level 2

This is exactly what is happening to me. Did you discover any way to fix it in the program?

RogerD1

Level 6

Regular payments for pensions or annuities are automatically considered to satisfy the RMD requirement for those required to take RMD withdrawals. When you enter your 1099-R in TurboTax and get to the screen "Let's get more information about your Required Minimum Distribution (RMD)", for the RMD due by Dec. 31, 2025 just enter an amount in that box that is equal to Box 1 for that 1099-R. Click Continue, and then select "The entire distribution applied to the December 31, 2025 RMD", then click Continue.

Since this is a pension, for Annuity information, answer yes that your received periodic payments, then continue answering the questions pertaining to that plan until you get back to the "Your 1099-R summary" screen.

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