I have two retirement accounts - an active 401k with my current employer, and one from an old employer that allows that 403(b) account to gain dividends without a rollover. That retirement account from which distributions were made is exempt because it is under the heading of "distributions from plan to which you cannot make contributions." That 403(b) account does not allow contributions. This choice is seen in the ITA on the IRS page. I also have a 7 in that box of the 1099-R, so TT has automatically denied the credit for years. This year I used 1040.com and it miraculously knew that the distributions were from an ineligible retirement account (pensions and annuities) and gave me the credit. Now, what to do about the previous years...
