Retired Teacher, received a 1099-R for total (lump sum) distribution from KPERS which was rolled into a Traditional IRA (1099-R, Box 2b "Total Distribution" and Box 7 Distribution code is "G-Direct rollover to a qualified plan, etc, etc, or an IRA). Turbotax is asking me to select the source of the distribution. The choices that potentially apply to me are, "KPERS or other qualified KS public pension benefits" or "None of the above". I don't understand the purpose of the question or how to know the correct answer. The distribution Payer is KPERS. Does that mean the source is "KPERS or other qualified KS public pension benefits"?
Below is the help information that pop's up when clicking the "Learn More" link. It doesn't explain the purpose of the question. This is confusing.
Kansas Special Handling of Pension Distributions
TurboTax Kansas uses the following pension code:
K - Federal retirement benefits, Kansas pension plans, or Railroad Retirement benefits
You can deduct federal civil service, Railroad Retirement Board and military retirement or disability benefits from your Kansas taxable income.
Kansas Public Employee's Retirement System (KPERS) retirement benefits are not taxable in Kansas. Kansas pension plans include:
- Kansas Public Employees' Retirement Annuities
- Kansas Police and Firemen's Retirement System Pensions
- Kansas Teachers' Retirement Annuities
- Justices and Judges Retirement System
- Board of Public Utilities
- Retirement annuity contracts for employees of the State Board of Regents or educational institutions under its management
- Kansas first class cities pension benefits (not covered by KPERS)
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You should check KPERS or other qualified KS public pension benefits. The question is not about the IRA that you rolled the distribution, but the source of the distribution, which is the distribution payer.
This question doesn't really affect your situation, as you had a direct rollover, but if you had a distribution with Code 7, entering that the distribution came from KPERS would mean that the distribution would not be taxable in KS.
@IsabellaG wrote:
This question doesn't really affect your situation, as you had a direct rollover
Exactly. Is turbotax not able to determine that this distribution is a non-taxable event since Code G (rollover) was entered as the distribution code? Asking for the source to determine if the distribution is taxable at the state level is confusing because a rollover is not a taxable event in the first place.
@IsabellaG wrote:You should check KPERS or other qualified KS public pension benefits.
Is turbotax not able to determine that the source is KPERS when it was entered previously as the Payer?
Your reply is appreciated. Turbotax just isn't all that great IMO.
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