Retirement tax questions
You are correct., Distributions from a commercial insurance or mutual company annuity (Code D also included with Code 7) purchased as a retirement annuity are not distributions from an eligible employer-sponsored retirement plan and are taxable as interest income to the extent they are included in federal gross taxable income.
When you are in the Pennsylvania (PA) tax return continue to the screen 'What kind of retirement income do you have from PA?'
Select from the dropdown 'Non-qualified deferred comp plan'.
TurboTax will automatically enter the interest income on the PA Schedule A.
