TurboTax Online version started asking the following question on 3/6/25 about a 1099-R distribution I entered for a Non-Qualified Stretch Annuity I inherited (1099-R Box 7 is 4D). Neither of the answers to the question below are correct for this 1099-R. I can’t find a way to resolve this Federal Tax Review error. If I select No, it produces additional errors because the 4D distribution code is for a death distribution from a non-qualified annuity. Fixing the new errors loops back to the issue / question below again. Please post a solution or have the software development team fix this bug so I can file my taxes.
Was This Distribution From a 403(b) Plan?
- Please read below and take any necessary actions.
- The distribution rules are slightly different for 403(b) plans compared to other more common qualified retirement plans, like 401(k)s. (These plans are similar to 401(k) plans, but typically only offered by public schools and certain charities.)
Answer #1: Yes, this is a 403(b) plan
Answer #2: No, it's another type of qualified retirement plan
