The military Survivor Benefit Plan does not meet all the requirements to be a qualified plan. The plan is non-qualified. Yes, the premiums were paid pre-tax from the military retirement pay and thus taxable at benefit distribution. Beneficiaries will receive a 1099R to be reported on the tax return. When asked in the follow on questions in the 1099R entry section in TurboTax, you would select "non-qualified plan."