Pension Issue with Turbotax: Simplified Method??

Forum|Forum|4 years ago
March 6, 2022
1 reply
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Turbotax is doing a smart check and it is saying "Simplified Metod line B should have a value". It's completing a Simplified Method Smart Worksheet. Also asking me the Plan cost at the annuity starting date. How am I supposed to know that. I don't even know what that means.

Thanks, Ricky

Not A Product Question

rjs

Level 15

Line B of the Simplified Method Smart Worksheet is your age on the starting date of the pension. Either you didn't enter it when TurboTax asked, or you jumped out of the topic before you got to that question.

The plan cost at annuity starting date is usually in box 9b of the 1099-R, "total employee contributions." If it's not there you will have to ask the company that makes the payments to you.

dmertz

Level 15

If the company has this information, they would generally have already provided the correct taxable amount in box 2a of the Form 1099-R and there would be no need to use the Simplified Method. Also, you should not be using the Simplified Method if you made no after-tax investment in the pension plan because your plan cost is zero.