Why is Turbo Task is asking if Military Retirement, an unqualified plan, is from a 403(b) or another type of qualified plan? Actions to take in review?

[clutchsr1930]

The form is asking a binary question about military retirement distributions which makes the retired pay look like a qualified plan. I can't skip over the review because I get caught in a review loop.

[JamesG1]

Review the entries for the IRS form 1099-R.  

There may be a conflict between the box 7 code, the Taxable/Distribution boxes and the IRA/SEP/SIMPLE checkbox that is confusing the software.

If the form was imported, consider deleting the form and entering the form by hand.

[carolandbillr]

I am having the same issue and whether you upload or enter by hand does not change the issue...please help!

[AmyC]

Military retirement is a nonqualified plan. Follow these steps:

1. Edit the 1099-R, 
2. select not an IRA, 
3. choose the state, 
4. select federal government retirement benefits, 
5. select non qualified plan
6. done

@carolandbillr @clutchsr1930 

[slflashy]

None of this was helpful.  Same problem for me.  I select non-qualified and it still forces it as a 403b or qualified.  I guess I can't use Turbo tax anymore

[DoninGA]

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@slflashy wrote:

None of this was helpful.  Same problem for me.  I select non-qualified and it still forces it as a 403b or qualified.  I guess I can't use Turbo tax anymore

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If you are entering a Form 1099-R and not a CSA-1099-R or a CSF-1099-R, then there is an issue with how the 1099-R was entered.  Military pensions are straight forward and should, in most cases, only include amounts in boxes 1, 2a, 4, and 7.

Delete the Form 1099-R and re-enter manually.

[slflashy]

Same issue for us.  I guess this is the end of the line for our option to use Turbo Tax.  Can't progress!  We have been using Turbo Tax for years and NEVER had this issue before.

[slflashy]

Same issue.  Everything entered correctly for both mine and my husband - we both have retired military pay.  Works for mine (I am 56).  Not for my husband who is 78.  It forces RMD.  NEVER had this issue in past years.

[NormanPetersen]

I have tried to manually enter the 1099-R.   

I get this screen.  Both options are incorrect for military retirement pay. 

I marked that the 1099-R was for a "non-qualified plan" on the previous screen.

When doing the review, I am unable to get past this error loop.

What do I do now? 

 

[BillM223]

There is a known issue with 1099-R forms with a code of D in the distribution box (such as 7D or 4D).

Please see this TurboTax Help page and sign up to be notified of any updates.

@NormanPetersen 

@slflashy 

[NormanPetersen]

my box only shows "7"

I called support and they said to list it as "qualified plan" and then state RMD is $0.

That worked... however, I'd prefer to put in the correct selection of "non-qualified plan".  I requested support submit a ticket to IT to update the software.

Hope they update the software before April 15th!!

[gayleve]

Same issue.  this creates a problem when you want the information to flow through to the state level.  PLEASE FIX THIS!!!

[Ron Chewning]

Same issue as previous user. Military retirement (which I've been claiming for over 20 years with no problems until this year with Turbo Tax). I deleted the form and re-entered the data myself and I still get the same error message: " I select non-qualified and it still forces it as a 403b or qualified". I'm in "Needs Review" hell and need a way out! Help please help.

[Amo1]

As noted in the @NormanPetersen reply above there is a work around for the on-line version of TT, but it is not elegant.

After entering the details for Defense Finance 1099-R and answering some generic questions the "work around" (but not valid) responses on some following screens are:

-- Military Retirement Distribution

-- Qualified Plan (most common)

-- No, it's another type of qualified retirement plan

-- RMD due by Dec 31,2024 (enter $0)

Technically the military pension is a non-qualified plan and there is no RMD required

[SharonD007]

Your experience has been forwarded to our TurboTax developers and they are working on a resolution.  There should be a resolution by the end of next week. Thank you for bringing to our attention.