I have a 1099R with code 7D in it for a life insurance plan. TurboTax won't let me move forward unless I select either "Yes, this is a 403b plan" or "No, this is another type of qualified retirement plan." It's neither. I select "No," and then at review stage I end up with an error that says "Type of account should not be selected for this distribution." To fix it I select "No entry" and I end up back at square one, "Yes, this is a 403b plan" or "No, this is another type...." This has been happening over and over. There's apparently no right answer.
I've looked for questions on this forum related to 1099R code 7D, but I get a page that says the error has been solved and therefore the page has been removed!!
If you are using TurboTax Desktop entering Form 1099-R with code 7D works. You might have to delete and reenter your Form 1099-R.
For TurboTax Online you can use dmertz's workaround:
For code 7D, omit the code 7 and enter only the code D.
[Edited 3/17/2025 | 1:00AM PST]
For anyone else dealing with this issue (which has NOT been fixed), it seems you can go ahead and file even with this error. That's what I did.
@DanaB27 Issue has not been fixed as of March 16. I’ve deleted and re entered a 1099-R with code 7D and keep getting message in review. It’s a continuous loop without any method of resolving.
@DanaB27 Work around (omitting code 7) does not fix problem. TurboTax requires a code. Put code 7 back in and still an error.
UPDATED REPLY: Went back to the 1099-R with code 7D, and realized that previously I had removed the 7, but did not uncheck that there was more than one code. Unchecked and put D as the only code. Continued and the question that forces you to choose that it is a 403 or other retirement plan, no longer comes up. Revisited ‘wrap up income’ and ‘federal review’. No more problem.