Retirement tax questions

I believe I found the issue. When filling out form1099-R in your Federal return, TurboTax PC software is mistakenly copying either the Gross Distribution (your received 1099-R Box 1) or Taxable Amount (your received Form 1099-R Box 2) into State Distribution (TurboTax form 1099-R Box 16), which triggers a pension form M1QPEN later when filing your State.

 

This is a problem with TurboTax software because Box 16 is BLANK in the 1099-R Box 16 I received in the mail. Therefore, TurboTax is inserting a number into TurboTax Form 1099-R Box 16 all on its own. I did not type anything into Box 16, but the software puts a dollar amount there (remember, it's supposed to be empty in my case).

 

So, I fixed the issue and avoided the mistaken trigger for a M1QPEN. The solution was to open the Forms view in TurboTax software, go to your Federal area and look for your Form 1099-R (THE PAYER NAME HERE). Open that form. Delete the amount shown in State Distribution (TurboTax form1099-R Box 16) if the 1099-R you received in the mail shows that Box 16 is empty. Then, switch back to Step-by-Step mode and continue your State return. It should no longer bug you to "fix" an M1QPEN, plus the review will not trigger creating one of them.