I have been receiving a monthly pension payment from a prior employer for about five years. In prior years, Box 11/Distribution Code was always a "2", which I think is "early distribution".
This year I received TWO 1099-R forms from that prior employer. One of the forms, for one month of pension, had a "2" in Box 11/ Distribution Code., just like prior years. But the second form, for 11 months of pension, had a "7" in Box 11/ Distribution Code. I think that's for "Normal Distribution" according to Turbo Tax. The total amount of the two forms is the same amount as prior years.
I'm wondering why I received two separate 1099-R forms and why one of them has a "7". I think the amount on the form with the "7" is being taxed. I turned 60 in early 2021. Does that have something to do with it? Will all my future pension payments be taxed? I am not retired yet.
Thanks!
