I have a federal pension. Turbo tax is asking me about RMD from an IRA? How do I answer these questions, so that my entire pension is not taxed as RMD?

Forum|Forum|6 years ago
June 3, 2019
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TurboTax Deluxe Online

Best answer by RKahane

YES, YES, YES! Civilian Federal retirement plans (FERS, CSRS, TSP)

are considered "Qualified" plans, meaning they are subject to RMD. But the good news is that your monthly annuity payments are considered as meeting the RMD, so just answer "Yes" to all the RMD questions.

DoninGA

Employee

Federal pension from an IRA? Is the IRA/SEP/SIMPLE Box checked on your Form 1099-R? What is the distribution code shown in box 7?

HunterTheLittleGuy

No such box.

Anita01

Employee

If you have a pension, you simply check yes that it''s all an RMD. The fact that a pension, or even an IRA distribution, is an RMD does not change the taxability of it, it simply avoids a penalty for not taking an RMD.

All pension plans are required to pay RMDs, lust like an IRA. The only difference is that, if you take pension distributions according to the plan requirements in retirement, the tax law defines that as meeting the RMD requirements.

Celery63Author

NO, NO, NO. You don't know what you are talking about. I am a federal retiree, with a pension. Of course it is taxable, but it isn't RMD. My pension has nothing to do with RMD, but turbo tax is treating it like RMD, resulting in a huge tax payment due from me.

Milly

This is my first time using Turbo Tax. Why does TurboTax ask a question where "yes" is always the reply? This is very confusing. Equally confusing are all the questions about how monthly pension is paid (it's paid monthly :)), hurricanes, disaster... I think that it would be a lot cleaner to separate pension payments from IRAs, etc., even if they are reported on the same form (if that is the case).

RKahaneAnswer

YES, YES, YES! Civilian Federal retirement plans (FERS, CSRS, TSP)

Rudder1

So in 2022 the IRS asks "how much" and "yes" just will not work. If anyone thinks they can get a RMD Amount from the US Government, Office of Personnel Management let me know. Otherwise I am inclined to enter the difference between Form 1099R Box 1, Gross Distribution, and 2a, Taxable Amount. I also think Turbo Tax should also know this information and automatically fill in the box.