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New Member
posted Mar 30, 2021 4:28:19 AM

Does question concerning minimum retirement age mean when received disablility distribution refer to 2021or the year he started getting disability pension checks

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2 Replies
Expert Alumni
Mar 30, 2021 6:17:49 AM

The question, Were you under your minimum retirement age when you received the distribution? is referring to 2020.  

 

According to TurboTax Help:

Minimum retirement age for disability is the earliest age you would’ve received a pension or annuity from your employer if you had not been disabled. It’s often age 55, but it can vary from one company to another and is often based on a combination of age and years of service. You may be able to find it on your 1099-R payer’s website by searching for a “Summary Plan Description” or in paperwork from your employer. If you can’t find it, contact your employer or plan administrator.  

Before you meet minimum retirement age, your disability income is reported on your tax return as wages (even though the money is coming from your retirement plan).  Once you reach the minimum retirement age the payments are reported as pension.

 

For more information, please see this TurboTax Help article:  Is disability income taxable? - TurboTax

Level 15
Mar 30, 2021 6:19:00 AM

In 2020 TurboTax It refers to his age in 2020.  Disability distributions he received before he reaches normal retirement age for the plan are treated as wages.