Retirement tax questions

No, you should not skip the question.  

• Qualified plans have tax-deferred contributions that are deducted from your income when contributed, and fully taxable when you take a distribution. 
• Nonqualified plans use after-tax dollars to fund them, and only the earnings are taxable upon distribution.

I expect you received a 1099-R.

Go back to your input screen and see if the "IRA/SIMPLE/SEP box is checked."

This will make it a Qualified Plan.

If that box is not checked, I suggest you delete the 1099-R and re-enter it.

First try to delete the record by selecting the Trash Can on the right side of the record.  If this doesn't work, you can follow these steps.

1. On the menu bar on the left that shows.
   1. My Info
   2. Federal
   3. State
   4. Review
   5. File
2. Select Tax Tools
3. On the drop-down select Tools
4. On the Pop-Up menu select Delete a Form
5. This will give you all of the forms in your return.
6. Scroll down to the form you want to delete.
7. Select the Form 1099-R for your 457 pension.
8. Click on Delete.
9. Always use extreme caution when deleting information from your tax return.  There could be unintended consequences.