@RBBrittain You would only use that approach if you were receiving monthly pension payments and the 1099-R has a code 3 in box 7 (disability). That is the only case when the "retirement age" question even comes up. About the only reason to do this would be if the Federal or State would qualify you for EIC if the pension amount for those payments received prior to retirement age would affect the amount of EIC. (if it makes no difference then there is not reason to do it.) Either way the pension income is taxed as ordinary income and added to the AGI.
There might be other nuances but treating pension as earned income for EIC is the only one I can think of.
Note also, if 1099-R box 4 (or state) tax was withheld then the IRS will receive a copy of the TurboTax 1099-R that you enter and they might question two 1099-R's. I would print and mail the return with an attached explanation as to why it was split.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
