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April 15, 2024
Question

My mother in law receives a foreign military pension from her late husband. She withdraws all of that pension annually. Would this count as withdrawing all of it as RMD?

  • April 15, 2024
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1 reply

Employee
April 15, 2024

RMD only apply to US retirement plans (as far as US taxes are concerned). 

 

However, since you are probably entering the foreign pension in TT as a 1099-R, it might be the better path to say yes to the all RMD question. That should have no affect other than to make sure there is no penalty for not taking an RMD, which would not apply to a foreign pension.

 

Just do note that your mother cannot use the foreign pension withdrawal to satisfy an RMD for a US retirement plan. Those will be separate.

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April 15, 2024

Thank you. She has to use substitute form 1099R since home country/pension does not issue those.