How do I determine rmd on a pension? The financial institution does not know and it's not on 1099?

Forum|Forum|1 year ago
January 31, 2025
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DoninGA

Employee

All of the pension income is a RMD.

SabrinaD2

To determine the Required Minimum Distribution (RMD) for your pension, follow these steps:

Determine the balance of your pension account as of December 31 of the previous year. For this example, we'll use $200,000.
Use the appropriate IRS life expectancy table. The most commonly used table is the Uniform Lifetime Table. You can find the tables here
Calculate the RMD: Divide your account balance by the distribution period from the appropriate IRS life expectancy table.
- For example, if your account balance is $200,000 and the distribution period is 22.0 years, your RMD would be:$200,000/22.0 = $9,090.91RMD.

You can use the IRS RMD Worksheets or the Investor.gov RMD Calculator to help with the calculations

wwrick

A pension does not have an account balance. The company makes annual contributions to the plan according to ERISA requirements. The plan can be overfunded or underfunded at any point in time. The employee contributes nothing. The pension commits to making payments to you after retirement. the amount is determined by the pension plan. You may be thinking of a defined contribution plan which is probably a 401k and which calls for periodic contributions by employee and employer. I never had one of these but expect there is always a balance known to the employee. The employee generally decides how to invest his money.

BillM223

Volvogirl is right, the pension plan sets the distribution to be at least your RMD. So just say that whatever was distributed is your RMD.

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VolvoGirl

Employee

No you don't need to calculate it and do all that. It's whatever they send you. Say all of it is the RMD. If you have a RMD requirement it will ask you if it is the RMD. Say yes and enter the amount as the RMD amount. The pension doesn't need to calculate any RMD. Anything your pension pays you is considered to be the RMD. Traditional pensions automatically fulfill the rules of an RMD. So just enter the same amount in box 1 for the RMD for each 1099R.