If you meet the service requirement but not the age requirement, you need to let the program know.
Tell the federal it is a regular pension:
When you went through the federal entry screen of the 1099-R, it asked questions and commented that with code 2 there was no extra penalty. It asked if you were a safety officer, what did you do with the money - cashed it, any periodic payments, yes- regular payments from this retirement account, payment start year, 2020 or before selection, describe the taxable amount, yes, box 2a is taxable amount.
Tell the state it meets the service requirements: Move to MS return: Proceed to the screen with the title Enter Any Other Income or Losses. Enter Service requirement pension adjustment and the amount of the distribution as a negative number.
MS says Taxable amounts include:
:• Pension and annuity distributions that are taxable as early or excess distributions under the federal rules (see federal Form 5329).
• Separation pay.
• Deferred compensation plan distributions received prior to attainment of retirement age and/or service requirements.
@scottg29
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