To determine the taxable amount under the simplified method, follow these steps:
After you enter your 1099-R, as you proceed with the screens,
- you'll be asked if 2019 was the first year that you received the payments. If you answer no, enter that a different amount was used other than box 2a.
- Then specify that you used the Simplified Method.
- If this is the first year of the distribution, check yes to that question.
- Then check whether you want to figure out how much is taxable or enter the taxable amount yourself.
- If you choose to figure the taxable amount with TurboTax, you'll enter the information about start date, plan cost, your age when you began receiving payments, etc. Upon completion, you'll see the screen as to which method was used.
If your annuity start date is after November 18, 1996, you must use the Simplified Method for annuity payments from a qualified plan.
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