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mark94
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I retired at age 56 (I'm now 59) and get pension annuity payments that are supposed to be covered by the rule of 72t. How do I account for this in turbotax?

I retired at age 56 and am now 59.  My pension annuity payments are supposed to be guided by rule 72t.  However, I end up owing taxes on my federal return.  Looking at a previous FAQ about this (from about 4 years ago), it mentions code 2 or 7 from 1099R will automatically trigger TurboTax to treat the payments as 72t, however my 1099R has code 1.  The previous FAQ said there is another area of Turbo tax where I can input information to trigger the 72t.  Does anyone know how to do this?

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I retired at age 56 (I'm now 59) and get pension annuity payments that are supposed to be covered by the rule of 72t. How do I account for this in turbotax?

This, according to dmertz, who's a retirement plan guru:

Enter the Form 1099-R exactly as received under Wages & Income (or Personal Income) -> Retirement Plans and Social Security -> IRA, 401(k), Pension Plan Withdrawals (1099-R), then answer the follow-up questions.

If the code on the Form 1099-R is code 2 or 7, TurboTax will automatically treat the distribution as not subject to an early-distribution penalty.  Otherwise, later when TurboTax prompts you enter amounts that are exempt from the early-distribution penalty, enter the amount of the distribution as the amount received as Equal Periodic Payments.

mark94
New Member

I retired at age 56 (I'm now 59) and get pension annuity payments that are supposed to be covered by the rule of 72t. How do I account for this in turbotax?

The problem I'm running into is that TurboTax is not asking me for amounts that are exempt.  Am I missing something?  Where does this question come up?

I retired at age 56 (I'm now 59) and get pension annuity payments that are supposed to be covered by the rule of 72t. How do I account for this in turbotax?

after you finish inputting your 1099-R, hit Continue till you're at Your 1099-R Entries.  Then Continue till you see that question.
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