Pension benefit guaranty corporation benefits - what does this mean?

[rewspva]

I'm putting in my 1099-R information and it's asking me "Where is your distribution from? This is one of the answers but I don't know what this means. Pension benefit guaranty corporation benefits

[ColeenD3]

If you don't know what it is, the odds are that it does not pertain to you.

What is the Pension Benefit Guaranty Corporation (PBGC)?

PBGC is a federal agency created by the Employee Retirement Income Security Act of 1974 (ERISA) to protect pension benefits in private-sector defined benefit plans - the kind that typically pay a set monthly amount at retirement.

[dmccauley1845]

On my 1099-R the box Taxable Amount not determined is checked and no Federal Income Tax was withheld.  Also, is PBGC a qualified plan?

[ToddL99]

The Pension Benefit Guaranty Corporation is a government entity that partially insures private pension plans that have failed (i.e. gone bankrupt).

PBGC is not a retirement plan itself, so it isn't qualified or non-qualified. The characteristics of the pension plan the PBGC has taken over will determine if it is qualified on not.

"Taxable amount not determined" means that some portion of your payment may be a non-taxable return of after-tax contributions you made while working. This information may be entered in Box 9b of your Form 1099-R.

When a single-employer defined benefit pension plan (a traditional pension) can no longer meet its obligations and has ended, PBGC may take over that plan (trustee).  When that happens, PBGC will be responsible for continuing payment of your monthly pension benefit or pay it when you become eligible to collect benefits (up to legal limits).

[tmo19]

What do I select on Turbotax for PBGC for qualified or Non qualified?

[JohnB5677]

It is a qualified plan.  Congress set up PBGC to insure the defined-benefit pensions of working Americans.  Defined benefit plans are qualified employer-sponsored retirement plans.

[amkonar]

On the 1099-R from USPBGC,  If box 2a (taxable amount) is 0 and box 2b (taxable amount not determined) is checked X we do not claim the gross distribution amount  in box 1 correct?

Thank you!

[Critter-3]

@amkonar 

Not correct ... unless you know of a reason that the full amount is not taxable then then the full amount is taxable ... leave box 2a blank in the program and complete the interview in that section to allow the program to fill in the taxable amount.  See the answer in your other post :  https://ttlc.intuit.com/community/user/viewprofilepage/user-id/5043444

[donbsoccer]

Is it a qualified or nonqualified plan? 

[donbsoccer]

What do I select on Turbotax for PBGC for qualified or Nonqualified?

[JohnW152]

According to Is my pension a tax-qualified plan under IRS rules? on the IRS Form 1099-R Frequently Asked Questions page on the Pension Benefit Guaranty Corporation's website, it's most likely a qualified plan:

Most likely, yes. PBGC treats the pension plans it insures as qualified.

If you're unsure, you should contact PBGC.  A phone number is on the linked page.

@donbsoccer