IRA started from a pension loan

Forum|Forum|6 years ago
February 4, 2020
6 replies
52 views

Upon retirement from the NYPD I took a pension loan and rolled it over into an IRA. When I start to take money from this IRA and enter it into Turbo Tax section do I select the option “IRA rolled over from a government pension”

TurboTax Home & Biz Windows

DaveF1006

Level 15

I ran this in my Turbo Tax test account and that option never appeared in the Federal interview or in the state return. Where did this appear for you?

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papa281Author

Level 5

After you enter the info from the 1099R the next page asks if this money was earned as a public safety officer, which I did so if would check this box. The next page gives a list of different options to choose from such as, federal pension, teachers pension, government and local pensions, etc and the one option before the last is “IRA rolled over from a government pension”

does my situation count as this?

KarenJ2

Level 13

You should choose "IRA rolled over from a government pension."

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dmertz

Level 15

If you received a loan from your pension plan that you must pay back and not a distribution reported on a Form 1099-R from the pension plan, this sounds like you simply used the money to make a regular contribution to an IRA and it is not a rollover of any kind.

papa281Author

Level 5

When you retire from the NYPD you can take the money from your pension that was not taxed in a lump sum and put it in an IRA, which I did. My question is when you start to withdraw the money RMD at age 70 1/2 when you enter it in the turbo tax program it asks if that money was earned as a public safety officer. So that question would be marked as Yes. After you continue a list comes up and one of the options to pick is “IRA rolled over from a government pension”.
That is what I am looking at. Would you choose option.

dmertz

Level 15

Yes, it appears that you established this IRA by a rollover from a government pension (for which you would have received a Form 1099-R for the year of the rollover) and that you did not receive any loan. A distribution from the IRA would be reported on a different Form 1099-R.