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For pension I want to change from non qualifed to qualifed but it always highlight the non qualifed

how do I change from non qualified to qualified
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5 Replies
MaryK4
Expert Alumni

For pension I want to change from non qualifed to qualifed but it always highlight the non qualifed

Go back to the 1099-R entry and Review.  Continue past the 1099-R entry and you will see the question on Qualified or Nonqualified.  See below,

 

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For pension I want to change from non qualifed to qualifed but it always highlight the non qualifed

The box for non qualified was highlighted. My pension is 457 so I wanted to change to qualified but nothing happened when I click the qualified box.

JulieS
Expert Alumni

For pension I want to change from non qualifed to qualifed but it always highlight the non qualifed

Whether checking that box changes your tax return depends on what amount of your 1099-R income is considered taxable. 

 

If your box 2 a amount is your taxable amount, your federal return won't change just because you checked that box. 

 

Please clarify your question, what did you expect to change based on checking the qualified box? If this is related to your state return, please let us know which state you are filing. 

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For pension I want to change from non qualifed to qualifed but it always highlight the non qualifed

Thank you very much for your explanation.I suggest in my case the system should let me skip the question. Do you agree?

JohnB5677
Expert Alumni

For pension I want to change from non qualifed to qualifed but it always highlight the non qualifed

No, you should not skip the question.  

  • Qualified plans have tax-deferred contributions that are deducted from your income when contributed, and fully taxable when you take a distribution. 
  • Nonqualified plans use after-tax dollars to fund them, and only the earnings are taxable upon distribution.

I expect you received a 1099-R.

Go back to your input screen and see if the "IRA/SIMPLE/SEP box is checked."

This will make it a Qualified Plan.

If that box is not checked, I suggest you delete the 1099-R and re-enter it.

 

First try to delete the record by selecting the Trash Can on the right side of the record.  If this doesn't work, you can follow these steps.

 

  1. On the menu bar on the left that shows.
    1. My Info
    2. Federal
    3. State
    4. Review
    5. File
  2. Select Tax Tools
  3. On the drop-down select Tools
  4. On the Pop-Up menu select Delete a Form
  5. This will give you all of the forms in your return.
  6. Scroll down to the form you want to delete.
  7. Select the Form 1099-R for your 457 pension.
  8. Click on Delete.
  9. Always use extreme caution when deleting information from your tax return.  There could be unintended consequences.

 

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