Retirement tax questions

These are the instructions for properly entering the RRB-1099-R (the green one).  It is important that you enter it at the correct place in TurboTax.  Please click here for additional help on entering your RRB-1099-R.

When you enter your form, you should see this:

The first question you are asking about is "Did Bobby receive these funds as a beneficiary of a railroad employee who passed away?"

You answered this correctly, "Bobby was a railroad employee".

The second question you are asking about is "What is the youngest age Bobby could have retired and received a pension from Bobby's last employer if Babby had not become disabled.

Normally this would be age 55 if your plan provides for early retirement, or 65, which is normal retirement age.

You can find this information by asking your employer's benefits or human resources department.  This information would be found in the pension plan document. They are basically asking how early could you have retired and still receive a pension from your employer had you not become disabled.

These questions are asked to determine if the distribution is for disability or not.  If you were younger than retirement age, it would indicate a disability retirement. They are reported differently on your federal tax return. 

A 1099-R has a code that indicates disability, but a RRB 1099-R does not. If you retire on disability, the payments you are receiving would be taxed as wages until you reach the minimum retirement age; that's the distinction.

Click here for an explanation of Form RRB 1099-R.

Click here for Publication 575.