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Level 1
posted Jun 28, 2020 1:39:26 PM

What exactly is a "qualified government retirement distribution"?

Turbotax is asking me if my retirement income from the Commonwealth of Massachusetts is a "qualified government retirement distribution." Unfortunately, Turbotax does not define what this phrase means and I could find no clear explanation online. It therefore must be a phrase only used by Turbotax. 

Turbotax does give examples, but the examples do not apply to me.

Turbotax should fix this flaw. In the meantime, I need a clear explanation of what is meant by "qualified government retirement distribution."  Qualified for what? What are the criteria?

Please, Turbotax, provide this information.

Thank you.

0 2 1235
2 Replies
Level 15
Jun 28, 2020 1:48:56 PM

A qualified retirement plan is one that meets ERISA ( Employee Retirement Income Security Act of 1974) guidelines, while a non-qualified plan falls outside of ERISA guidelines.

 

Most employer 401(k) and like plans are qualified.   Government plans can be either qualified of non-qualified. 

 

The plan administrator could tall you or possibly the plan website (if any) will tell you.

 

 

Level 1
Jun 28, 2020 1:55:30 PM

That was fast! Thank you.

Later on, Turbotax gives more information about what this term means. If I knew that it does that, I would not have had to ask about it here. I hope that it can provide that information earlier in future editions.