He did his taxes manually and I know he used the simplified method last year. If you just use the simplified method worksheet like he did, it looks like everything's fine cause there's no mention of pre-1986. But if you actually read through Pub. 721, you'll see that the simplified method can only be used if the annuity started after July 1, 1986. His started in 1984 so his choices were the general rule or the 3 year rule. The error that pops up on turbotax is due to the date - 1984 vs 1986.
