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April 9, 2025
Question

Why is Turbo Tax is treating a government pension plan as if it were an inherited IRA?

  • April 9, 2025
  • 2 replies
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    2 replies

    VolvoGirl
    April 9, 2025

    What code is 1099R box 7?   Oh, is it asking for the RMD amount?

     

    Say all of it is the RMD.   If you need to take the RMD it will ask you if it is the RMD.  Say yes.  Anything your pension pays you is considered to be the  RMD.  Traditional pensions automatically fulfill the rules of an RMD. So for the RMD question put in the same amount as box 1.

    April 9, 2025

    To address why TurboTax might be treating your government pension plan as if it were an inherited IRA, follow these steps:

    Check Form 1099-R:

    • IRA/SEP/SIMPLE Box: Ensure this box is not checked on your Form 1099-R
    • . If it is checked, TurboTax may treat the distribution as coming from an IRA, which could lead to incorrect handling.

    Verify Distribution Code:

    • Box 7 Code: Confirm that the distribution code in Box 7 accurately reflects a government pension plan and not an inherited IRA -see box 7 codes here.

    Instructions to Check 1099-R in TurboTax:

    • Navigate to 1099-R: In TurboTax, click the magnifying glass icon and type "1099-R" in the search box. Click the "Jump to 1099-R" link.
    • Edit Information: Click "Edit" next to your 1099-R entry. Scroll down to Box 7 to verify the distribution code