"simplified method" on annuities & pensions

Forum|Forum|5 years ago
July 14, 2020
1 reply
9 views

Been doing TurboTax for years; been retired for years; first time I've seen this. I'm supposed to calculate the "plan cost" of my pension. There's no way I can do this. Don't have the records and don't really understand the question. I've got several other smaller annuities so I'm in a real panic on how to do this.

macuser_22

Alumni - Champ

You cannot change methods. What method did you use last year. If you used the box 2a as the taxable income than that is what you select this year.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

lhansen789Author

Level 2

I didn't choose a method in any previous years. This is the first time turbotax has presented this to me. I've checked the same boxes I've always checked.

macuser_22

Alumni - Champ

@lhansen789 wrote:

I didn't choose a method in any previous years. This is the first time turbotax has presented this to me. I've checked the same boxes I've always checked.

For many years (at least back to 2010) TurboTax has always asked the follow question for a 1099-R that has a code 1,2 or 7 in box 7 and the IRA box is not checked and you select that it is a qualified retirement account. If you choose the box 2a method you are done. If you choose another amount then you get the simplified method questions.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**