Why is TurboTax associating CALSTRS with Required Minimum Distribution? CALSTRS benefit type is "Service Retirement"?

Forum|Forum|3 months ago
April 15, 2026
1 reply
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It works like an annuity

TurboTax Online

BillM223

Level 15

In reading the CALSTRS Annual Report for 2025 it appears that what they call Pension2 offers 403(b), Roth 403(b), 457(b) and Roth 457(b) plans (page 17).

A Required Minimum Distribution is a distribution required by Congress once you turn 73 because you cannot keep retirement funds in your account indefinitely. This applies to a laundry list of retirement programs, including 403(b) plans and 457(b) plans.

Pensions and annuities are often confusing for taxpayers, because they are reported and taxed in the same way. Both are reported on a 1099-R, and both are taxable, unless the taxpayer has contributed some after-tax monies which, when returned, are tax-free. Normally, the amount of tax-free distributions for qualified retirement plans is calculated using the Simplified Method.

In short, pensions and annuities are generally subject to the minimum distribution rules.

Note: both pension payments and annuities payments for qualified retirement plans are calculated to cover your RMD, which simplifies the taxation process for plan participants. This means that the plan administrators have already accounted for the after-tax contributions (if any) and have entered the correct taxable amount in box 2a on the 1099-R.

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