Question

Inapropriate handling of 1099-Rs

Forum|Forum|5 years ago
March 25, 2021
1 reply
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I would like this to be feedback to Intuit. I don't know that this is really the place for that or if there is a better place.

It seems odd that TurboTax asks questions about RMDs when collecting information from 1099-Rs not for IRAs. I have one for a pension plan and one for an annuity not related to an IRA. Both of these wanted information about whether the distributed amount was an RMD. Answering no seemed to result in the amounts ending up on the tax form apppropriately, but the questions seem inappropriate.

D

dmertz

Employee

Regular periodic distributions from pension plans are technically RMDs. TurboTax asks the question only to determine the amount that is eligible for rollover, but since you can't and didn't roll over any of such distributions anyway, it doesn't matter what answer you give to this question with regard to these distributions.

B

Bob ColemanAuthor

I thought RMDs were relevant only to IRAs. You're saying that's not the case?

D

dmertz

Employee

RMD means Required Minimum Distribution. The key word is "required." Being required means that it must be distributed and cannot be rolled over (put back into a qualified retirement account). Regular periodic distributions from a pension plan must be distributed, are both the minimum and maximum amount that is to be distributed, and are not be permitted to be rolled over, so, by definition, they are RMDs. For other types of distributions from qualified retirement plans (IRAs, 401(k)s, pension buyouts, etc.), whether or not any of the distribution is a Required Minimum Distribution depends on your age.