It sounds like the Code 3 being used in Box 7 may be causing the age calculation error and the subsequent "Simplified Method" error message. To clear this error, take the following steps:
Since...
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It sounds like the Code 3 being used in Box 7 may be causing the age calculation error and the subsequent "Simplified Method" error message. To clear this error, take the following steps:
Since you are using the Desktop version, go to Forms Mode and click on your Form 1099-R on the left, then scroll down until you see Section E under Pension and Annuity Distributions Only
If the box, "Disability Payments - Minimum Retirement Age" box is checked "Yes", change it to "No".
Next, scroll down just below Section E to find the Simplified Method Smart Worksheet and Sections A-C:
A Here, answer "No" if the annuity is not payable on the life of more than one individual.
B Enter the age of the annuitant at the annuity start date
C Enter the age of the youngest survivor annuitant (if applicable)
Note: If the above does not clear the error message, select Delete Form at the bottom left of the screen and re-enter your Form 1099-R, but use Code 7 (normal distribution).