@xmasbaby0 I believe that TurboTax would only ask this question for a 1099-R with distribution code 3 (disability) in box 7. The disability pension was almost certainly paid monthly, but the total is all on one 1099-R for the year. Some of the monthly payments were made before the recipient reached the minimum retirement age for the plan, and the rest of the payments were made after minimum retirement age. The payments before minimum retirement age are supposed to be reported as wages on Form 1040 line 1, and the payments after minimum retirement age are supposed to go on line 4d. But there's no way to do that in TurboTax. In effect, TurboTax assumes that the person was either under or over minimum retirement age for the entire year. Answering Yes to the question puts the entire amount for the year on line 1, and answering No puts the entire amount on line 4d. But there's no way to split it (not even in forms mode). That's the OP's dilemma. I don't have a good answer for him/her.
@dkla5 Is there anything in your tax return that depends on the amount of your earned income, such as Earned Income Credit (EIC), child tax credit, child and dependent care credit, or an IRA contribution? If not, whichever answer you choose is probably not going to make any difference in your tax. I would just answer No and let TurboTax report the entire amount as pension income. The IRS is not going to question that.
