what does 'eligible' & 'non-eligible' mean?

s-yoder — Tue, 31 Mar 2026 19:00:35 GMT

This concerns a retirement annuity

Re: what does 'eligible' & 'non-eligible' mean?

LindaS5247 — Wed, 01 Apr 2026 01:06:04 GMT

It depends where you are seeing the terms eligible and non-eligible in TurboTax. It likely has to do with rollovers.

What TurboTax may be referring to regarding a retirement annuity being "eligible" and "non-eligible" is whether it can be rolled over into another retirement account. If the retirement annuity meets the IRS guidelines for specific tax benefits and whether it can be rolled over into another retirement account.

Such as: A qualified plan is eligible to roll over into an IRA or another 401(K) within 60 days to defer taxation. A nonqualified plan is non-eligible to roll over into an IRA.

If you mean qualified or nonqualified, that refers to the status of the retirement plan. Qualified plans must cover most employees and are considered to be non-discriminatory. Non-qualified plans can be provided to select key employees or executives, and are not non-discriminatory in nature.

Qualified plans (like a 401(k) or 403(b) plan) are subject to laws under ERISA and meet strict IRS rules regarding participation, contribution limits, and vesting. Most employer provided retirement plans are qualified plans. Non-qualified plans (such as a deferred compensation plan) are usually for executives or key employees, and lack tax-deferred aspects.

If you have additional information or questions regarding this, please return to Community and we would be glad to help.

topic Re: what does 'eligible' & 'non-eligible' mean? in Get your taxes done using TurboTax

what does 'eligible' & 'non-eligible' mean?

Re: what does 'eligible' & 'non-eligible' mean?