Turns out that if box 7 entry is “7”, the software asks whether the plan is qualified or non-qualified. It doesn’t query qualified versus non-qualified if the entry is “4” which is the only box 7 value on my payor 1099-R. If “4” is entered first and I add “7” as a second box 7 value, the software behaves as if only a “4” is entered.
Inserting a box 7 “7” value will lead to a qualified versus non-qualified question, but it doesn’t matter because after form 4852 text is entered, there is nothing that prompts a user to enter numbers to correct the 1099-R, in particular to enter the cost basis so that the software can insert a correct value into box 2a on a form 4852 that replaces the incorrect 1099-R.
After running through several options countless times, my approach is to enter values “7” and “4” (in that order) when initially entering 1099-R box 7 details, continue through the process and select “I need to file a substitute 1099-R” on a subsequent query page. Use next pages to answer questions on how one calculated substitute values, and did the payee (turbotax user) attempt to get a corrected 1099-R from the payor, etc. At this point the software doesn’t do anything to prompt a user to enter corrected 1099-R values. The user needs to open the form 4852 (substitute 1099-R) that the software generated. Find and modify the form 4852 in the view/forms menu item. This is how I make 2025 premier work in my case as of this date. I expect it is better to generate a form 4852 (so that this form is included in e-filing or filing by mail) instead of just changing 1099-R details at initial entry. Once form 4852 is opened and revised, the software will change initial 1099-R entries to match what is revised via the 4852 form and the software follows through with valid calculations.
