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BADASDART
New Member

1099R disabled

I have a 1099r postal, I went out on a disability at age 50 I am now 58, Box 2 is unknown. I found where I put it in under office of personnel management. being disabled would I still put it here?? Also, Would I be taxed federal if I am disabled?? and lastly if I am 58 and I under the min retirement age and is that question for now or when I was disables??? Would my taxable amount be zero???

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1 Reply
dmertz
Level 15

1099R disabled

Being disabled is an exception to the early-distribution penalty that would otherwise apply.  The code 3 in box 7 of the Form 1099-R indicates that this penalty exception applies.  It is not an exception to paying income tax on the distribution.

 

TurboTax is asking what the normal retirement age is for the plan.  When you are under the normal retirement age for the plan and receive disability payments from the plan, the payments are reported on your tax return as wages instead of as retirement income.

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