On my 1099R, block 7 it says "2-non-disability". That is not one of my choices in Turbotax. As a result, I think I am being overtaxed. What to put in that block?

[DoninGA]

You enter a 2 in box 7 of the Form 1099-R.  For some reason OPM enters non-disability as part of the code which does not conform to IRS rules.

[mottledduck]

then my choice becomes early distribution.  I have met the standards for retirement.  Perhaps because I have other sources of income, I get taxed at a higher level.

[DoninGA]

Code 2 is Early distribution, exception applies (under age 59½.  So you are not being assessed the 10% early distribution penalty.  The taxable amount of the distribution is entered on your tax return as ordinary income and added to your other income, taxed at your current tax rate.

[mottledduck]

then, a few screens later, I get a choice between (1) moving it to another retirement account or (2) did something else with it (cash out).  This confuses me because the annuity is not tied to my either my 401K or my TSP.  

[macuser_22]

What is in box 2a?
What is in box 9b?

If this is a CSA 1099-R, did you choose the CSA type on the first "Choose 1099-R Type" screen?

[mottledduck]

the 1099 R I received did not have a 2a.  Just 2.  9b has my total employee contribution

[mottledduck]

I did not see where I could choose the 1099-R Type.  

[DoninGA]

When you first access the section for entering a 1099-R, the screen has 4 choices for you select the type of 1099-R you are reporting.
1099-R
CSA-1099-R
CSF-1099-R
RRB-1099-R

[mottledduck]

I started over and double checked.  I used CSA-1099-R.  Same answer.  I may play around with this.

[macuser_22 · Accepted solution]

With a blank box 2a and a 9b amount you are required to use the simplified method to determine the taxable amount.   If this is not the first year to receive the pension, use the 2017 tax return CSA 1099-R simplifies method worksheet as a guide.