Deductions & credits

Foreign pension income, first determine if it is taxable income to the US based on the treaty. See United States Income Tax Treaties.

If the income is taxable to the U.S.:

1. You need to enter the income and there are a couple of ways, including the one described above your question.
2. then you can proceed to enter the taxes paid as described above.

If the income is not taxable to the U.S.: 

1. enter the retirement income - again as described above or a substitute 1099-R.
2. you will need to enter the income under misc income as a negative amount.  To do that:
   1. go to the income section,
   2. scroll to the bottom option,  Miscellaneous Income.
   3. select,
   4. scroll to the bottom again, Other Reportable Income,
   5. select.
   6. Enter the income as a negative and the description (name your exempt country, like Netherlands) treaty. 

For further information on tax treaties, refer to the International Tax page  of the U.S. Department of the Treasury.

@fjk56