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posted Jan 28, 2021 11:55:17 AM

Payment start year

I have been receiving pension payments from CNA  my employer from which I retired in 2014 (payments administered by Wells Fargo)since 2014 but in 2020 the administration of the pension plan was changed from Wells Fargo to Alright Solutions.  Turbo Tax asks the question Is 2020 the first year I received Payments from Alright Solutions.  How do I answer?  Yes or No .  

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1 Replies
Expert Alumni
Jan 28, 2021 12:39:09 PM

No.  Since only the Plan Administrator changed and you are receiving the payments from the same plan, it is not the first year you are receiving benefits from this plan.  The first year question is to help determine the taxability of the benefits received if you made any after tax contributions.  Since this is the same plan just a different administrator and is a pension plan, you would not have any after tax contributions to the plan.  All the benefits received would be 100% taxable.