My husband gets a Pension payment each month from the Teamsters. It is not a 401K, or IRA. We have taxes taken out before we receive it. Is this considered a RMD?

Forum|Forum|6 years ago
June 1, 2019
2 replies
0 views

His pension is a set amount for life.

TurboTax Deluxe Windows

Best answer by MargaretL

Yes, it is considered an RMD.

For pension distribution, the RMD is satisfied by simply receiving pension periodically. Therefore, you may simply select "yes" to the RMD question (Was this withdrawal RMD and ALL of this was RMD). You will also be asked if the amount reported is paid periodically in equal amounts. By selecting "yes" the RMD requirements are met and you may continue with the tax preparation.

MargaretLAnswer

Employee

Yes, it is considered an RMD.

wjsx

When say YES to "The entire distribution was an RMD" and then it asks:

"From what you shared earlier, you received $xxxxx.00. If your total RMD for 2024 was higher than what you took out, there might be additional taxes to consider.

"Could you tell us what the required minimum distribution for your account was in 2024?"

If we put the 1099-R Box Gross Distributions amount in there, that wouldn't be correct because We had Federal (box 4) and State (box 14) Income Withheld!! As another Person in the Community asked, TT should Re-word this more Clearly, or maybe they do not understand, too?? Shouldn't we subtract the Federal and State tax amounts from the Gross Distribution amount to result in the "Required Minimum Distribution Amount" ??? Because we didn't receive that Total Required Minimum Distribution Amount if Taxes were Witheld from it !!!! Other posts / questions, have not been answered clearly by the TT "Experts". They say "Ask your Plan Provider" which is not helping!!

@LB641

@JulieP

Employee

The tax withholding doesn’t matter or figure into it. You received the full distribution in box 1. Just that part of it went to withholding. Like if you had received the full amount and made an estimated payment to the IRS. The withholding was for you.

Sprite836

My dad receives 2 pensions -- TMRS and Teamsters. He does not pay taxes on it. They are not 401Ks or IRAs. Should I still put yes to say if RMD -- and then select All. Then it asked if it was converted or cashed out? What is appropriate. He is well over 70 1/2 years old.