I have a 1099-R's for an annuity. In the past Turbo Tax allowed me to enter the taxable amount according to IRS pub. 939 using the general rule. Not this year. Why?

[ReneV4]

The IRS has increasingly moved toward the Simplified Method (SM) for most retirees. Per IRS Publication 575, if your annuity is from a Qualified Plan (like a 401k, 403b, or standard employer pension) and your annuity start date was after November 18, 1996, the IRS generally requires you to use the SM. Here are the general guidelines:

• If your annuity is a Qualified Plan (e.g. 401k, 403b) that started after November 18, 1996, use the Simplified Method; or either if before November 19, 1996
• If your annuity is a Non-Qualified Plan (commercial annuity bought with personal savings), use the General Rule
• If you are 75+ at the start date, use the Simplified Method, unless you have 5+ years of guaranteed payments. Then, use the General Rule

If TurboTax believes your Form 1099-R is for a standard retirement plan (like a 401k or pension), it may default to using the Simplified Method and will bypass the General Method. If you meet the criteria, to prompt the General Rule, do the following:

1. On the 1099-R entry screen, make sure Box 7 matches your form (likely Code 7 or Code 1)
2. Ensure the "IRA/SEP/SIMPLE" box is unchecked 
3. When the software asks, "What kind of retirement plan do you have?", select "Non-qualified retirement plan"
4. By selecting Non-Qualified retirement plan, you are telling TurboTax that the plan is not subject to standard 401k/pension rules, which triggers the General Rule calculation screens

Learn more by reading IRS Publication 575 - Partly Taxable Payments. 

[slpoetzl]

TurboTax does not take me to the General Rule when I checked the non-qualified plan box. 

There must be a mistake in the programming of TurboTax with 1099-R's that are from non-qualified plan. 

How can we get the programmers at TurboTax to correct this before April 15?

[JamesG1]

TurboTax does not support the computation of the General Rule Method.  The taxable amount of the distribution is manually computed.

Box 2a Taxable amount may be entered at the screen Enter your 1099-R details if you are not able to generate the entry screen Annuity information. 

IRS Publication 939 General Rule for Pensions and Annuities including IRS actuarial tables may be found here.  The worksheets are found on pages 12 and 13.

@slpoetzl