Is a gain on a life-insurance policy considered an RMD?

Forum|Forum|1 year ago
February 11, 2025
1 reply
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The insurance company reported a small amount on a 1099-R as a taxable gain on distributions from the policy. Thank you for helping.

Best answer by MAK70

No, you are only required to take a required minimum distribution from a qualified retirement plan.

MAK70Answer

No, you are only required to take a required minimum distribution from a qualified retirement plan.

doveofpeace3Author

Thank you for your quick response. TurboTax is putting the small amount into a RMD. Would you know how to fix it?

DavidD66

To get rid of the RMD, you need to clear the RMD information already in TurboTax. To do so, you will have to delete your Forms 1099-R. After you delete the forms re-enter them. When you are asked "How much of the [distribution amount] was an RMD?" Mark the button to indicate that "None of this withdrawal was an RMD". On the screen with "Let's get more information about your Required Minimum Distribution (RMD)." the program asks "Could you tell us what the required minimum distribution for your account was in 2024?" Enter $0.00.

After you have entered all your Forms 1099-R, on the screen with ""Let's check if you met the minimum distribution requirement" the program will ask "Did you take the required minimum distribution (RMD) for 2024 for ALL of your retirement accounts that have this requirement?". Answer Yes, assuming that you have met your combined RMD requirements.

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