I have a pension plan that has Qualified and Non Qualified disbursements. I get 1099-R forms for the Qualified portion and a W2 for the Non Qualified. The Non Qualified is the portion of the pension that is above the Qualified amount allowed to roll into an IRA. Turbo Tax is asking if amount in the W2 Box 11 is a distribution from a non qualified pension plan. Is the correct answer Yes?
Correct - the answer is yes. Box 11 on the W-2 is for distributions from nonqualified pension plans.
It's asking me if the amount from my 199-R is from a qualified or non qualified plan. It's what I receive from my Military retirement (pension). They have pension plans listed as example of qualified plan. However, Military retirement plans are are listed as non qualified. I'm confused what to enter.
@jazzfan8 wrote:
I meant 1099-R
Military pensions are a non-qualified plan.
Ya, I just wasn't sure what to enter. This is the first time using Turbo Tax. I wonder if it even makes a difference which one you enter as far as the amount of return or what you owe.
Military retirement is considered a non-qualified plan.
The term "qualified retirement plan" applies to plans covered by the Employee Retirement Income Security Act, or ERISA. ERISA only covers private sector retirement plans. The law does not cover public sector pensions including federal government plans such as the military retirement system. Military pensions are therefore considered nonqualified plans.
https://www.dol.gov/general/topic/retirement/erisa
Here's a TurboTax link to information about taxes and the military.
Thank you for your service.