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Level 2
posted Mar 16, 2022 10:07:54 PM

If I inherited money from my father's Trust after he passed, which box should I choose on the Pension, Annuity, or IRA page?

This question is specific to the state portion of the taxes. On that page it ask if it was an Employer-sponsored pension plan

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1 Best answer
Expert Alumni
Mar 17, 2022 7:32:39 AM

This is a pass through item from some other source (retirement fund).  So it depends on what your father's income source was.  Was he getting a military pension or an IRA distribution or an employer sponsored pension?  The payor information on the form 1099R should provide some clue as to the source.  

 

Normally, if it is not military or IRA, it is employer sponsored.  However it could be an annuity that he had set up outside of employment.  You will need to find the actual source of the 1099R.  That will guide your selection. 

6 Replies
Expert Alumni
Mar 17, 2022 5:28:45 AM

Please clarify. I just want to confirm that you are working on state section and not in the federal section of TurboTax.  What state are you referring to?

Level 2
Mar 17, 2022 5:35:30 AM

Hey there.

Yes, I'm working in the "state" section on Turbo Tax.  Additionally, I'm referring to Arkansas.

Expert Alumni
Mar 17, 2022 6:07:35 AM

It depends.  If your Form 1099-R has a check box for an IRA, you should select that, if not, then you might choose an employer sponsored plan. If you know it was not a military pension, then that one would not be selected. If you are not retired, you should select 'Other'. 

 

It's important to make the right selection because Arkansas residents over 59½ years old can deduct the first $6,000 in funds they take out of their IRAs and other retirement accounts. Persons would get this deduction using the same method. It is specifically for a person who is retired.  As a beneficiary you must answer the question based on your age.

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Level 2
Mar 17, 2022 6:43:10 AM

The 1099-R does not have a check mark in the box: IRA/SEP/ SIMPLE.

Additionally, I am not over 59 and a half and the distribution code was: 4. It's also not a military pension. So I should select other, or are you saying I should select employer sponsor pension plan. (I'm not sure if I said this above or not, but the money that I heard it was from a Trust, not a traditional retirement fund).

Expert Alumni
Mar 17, 2022 7:32:39 AM

This is a pass through item from some other source (retirement fund).  So it depends on what your father's income source was.  Was he getting a military pension or an IRA distribution or an employer sponsored pension?  The payor information on the form 1099R should provide some clue as to the source.  

 

Normally, if it is not military or IRA, it is employer sponsored.  However it could be an annuity that he had set up outside of employment.  You will need to find the actual source of the 1099R.  That will guide your selection. 

Level 2
Mar 17, 2022 8:41:29 AM

Okay. Thank you. This really helps me out.