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!!
Distribution Code is 7. Age is 78. NEVER had this ever happen in past years.
This not happening on mine it appears. I am 56. only happening for my husband who is in 70s.
@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?
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
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.
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 wrote:
FYI, I am going it online.....Premium version
Thanks, I will try to make it fail there.
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.
@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.
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.
It is NOT another type of QUALIFIED PLAN though. I will try and see if it affects my bottom line correctly or not.
What you recommended does not work. It has me paying a penalty for the RMD I did not take. That is a no go.
NOPE, that does not work. Has me paying because I did not take the RMD. Has me paying 6000 more in taxes.
@slflashy So, you are seeing a penalty on Schedule 1 Line 8? My 1099-R went through with no penalty.
@slflashy Something is definitely screwy with the online software for this type of retirement income. I will go ahead and report this to the TurboTax Moderators of this forum and let them get ahold of the developers to get this fixed (Hopefully)
I experienced this also, but with a twist. I'm completing a return for my deceased father. I had all information entered last week, resulting in a refund of all his taxes paid. I went in today to correct a slight error in the income tax withheld and all of a sudden he owes a very large penalty. I did not change any other numbers. I agree that something in the programming may have changed over the weekend. Even if I indicate the entire distribution applies to RMD, it still calculates the penalty. I have to change the RMD due by December 31, 2024, to zero in order to have the program calculate correctly. I did not have to do that last week.
I tried another method--I chose Qualified Plan instead of Non-Qualified and answered the remaining questions appropriately and it didn't apply the penalty. The key to the problem, it seems, is when appropriately choosing the Non-Qualified Plan option and then having to answer the question, Was This Distribution From a 403(b) Plan? You have no choice but to choose No, it's another type of qualified retirement plan, even though you've already said it was Non-Qualified. Any way you answer the remaining questions after that result in a penalty unless you answer "0" for RMD amount due by December 31, 2024.
I just used your ???? and it worked. The errors disappeared and I was able to send efile.
Obviously the coders for this section were not retired military or they wouldn't have coded it this way.
I am having the same issue. The Turbo tax on-line version must have a program error that needs to be fixed. I, too, have never had this problem in the past when using Turbo Tax. Why now? This coding error has the potential to impact all military retirees who use Turbo Tax. A work around that makes a person falsely answer a tax question is not a permanent, nor acceptable solution. The coding problem needs to be addressed now.
very disappointed in the program this year. have you heard of a fix to this issue?