Turbo Tax is forcing Military Retirement Pay as a Qualified Plan and penalizing for RMD

[slflashy]

Turbo Tax is forcing Military Retirement Pay as a Qualified Plan and penalizing us for the RMD for which they are not required. Selected Non Qualified and it still is doing this because of age I suspect. There are no other options to fix it. Already deleted and reentered.  Everything is selected correct.  After entering the info and the nonqualified it takes us to a screen where we HAVE to select either 403b or qualfied plan to progress.  HELP!  There must be an error in the software!!

[DoninGA]

What code is in box 7?  Are you under the age of 59 1/2?

[slflashy]

Distribution Code is 7.  Age is 78.  NEVER had this ever happen in past years.

[slflashy]

This not happening on mine it appears.  I am 56.  only happening for my husband who is in 70s.

[DoninGA]

@slflashy I just completed a Form 1099-R with a code of 7 in box 7 and the age of the recipient is 78.  Entries were in box 1, 2a, 4 an 7 only.

Went through the screens following entry of the 1099-R and selected Non-Qualified Plan.  Landing on the screen where it asks about Missing a Required Distribution from Any Retirement Accounts, I selected None of these plans failed to withdraw the RMD.  Continue.  Put the tax return through both Federal Review and Review with no errors.

If your return follows this scenario what do you see?

[slflashy]

Asks if i am a public safety officer or file a subsitute 1099 or is the corrected box checked.  Clicked NONE APPLY.  Then takes me to Was this part of a 403b plan and only options are 403b plan or Qualified.  It is neither so I can't progress

[slflashy]

I don't get what you just got.

[DoninGA]

After I select NO for being a public safety officer and continue, the next screen asks for the NonQualifed or Qualified plan.

I do not see a screen asking about a public safety officer or file a subsitute 1099 or is the corrected box checked.

Have you checked to see if you have the latest release for the software?

Click on Online and then click on Check for Updates

I cannot get my software to fail like yours does.  I am using the 2024 TurboTax Premier desktop edition for Windows.

[slflashy]

Yep all latest.  I am seeing quite a bit of traffic now from others on the SAME issue so it is NOT just me.  Something is amiss.  Hope it is fixed.  I really like using TurboTax, but can't with this so this.

[slflashy]

FYI, I am going it online.....Premium version

[DoninGA]

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@slflashy wrote:

FYI, I am going it online.....Premium version

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Thanks, I will try to make it fail there.

[Buckeye Champs]

I have been having a similar problem with TurboTax. On my state there appears a non-transfer of data regarding my military retirement status, because on the state side of turbotax it doesn't recognize my military retired status, thus not populating the states tax deduction. Therefore, somewhere on the federal side entry was incorrect, especially after reading comments non-qualified va qualified distribution. My 1099R has block 7 with a 7.

[VolvoGirl]

@Buckeye Champs   Will this help?  For 1099R state…….

If box 14 has an amount and box 16 is blank put in the amount from box 2a in box 16.  If 2a is blank then put in the amount from box 1.

[DoninGA]

Ok...I see the screens you are seeing. 

I selected Non-Qualifying plan. 

On the screen Do any of these situations apply to you?  I selected None of these apply.  

On the screen Was This Distribution From a 403(b) Plan?  I selected No, it's another type of qualified retirement plan

On the screen Let's get more information about your Required Minimum Distribution (RMD).  I entered a 0 and continued.

On the screen Did John Miss a Required Distribution From Any Retirement Accounts?  I selected None of these plans failed to withdraw the RMD

This completed the entry of the Form 1099-R.  Ran through review and got one error which asks for type of account and the entry was Other.  This kept coming up but I just ignored it and continued through until I was ready to file with no issues.

[slflashy]

It is NOT another type of QUALIFIED PLAN though.  I will try and see if it affects my bottom line correctly or not.