topic Re: "simplified method" on annuities & pensions in Retirement tax questions

"simplified method" on annuities & pensions

lhansen789 — Tue, 14 Jul 2020 02:13:50 GMT

Been doing TurboTax for years; been retired for years; first time I've seen this. I'm supposed to calculate the "plan cost" of my pension. There's no way I can do this. Don't have the records and don't really understand the question. I've got several other smaller annuities so I'm in a real panic on how to do this.

Re: "simplified method" on annuities & pensions

macuser_22 — Tue, 14 Jul 2020 02:19:57 GMT

You cannot change methods. What method did you use last year. If you used the box 2a as the taxable income than that is what you select this year.

Re: "simplified method" on annuities & pensions

lhansen789 — Tue, 14 Jul 2020 02:48:31 GMT

I didn't choose a method in any previous years. This is the first time turbotax has presented this to me. I've checked the same boxes I've always checked.

Re: "simplified method" on annuities & pensions

macuser_22 — Tue, 14 Jul 2020 02:58:05 GMT

@lhansen789 wrote:

I didn't choose a method in any previous years. This is the first time turbotax has presented this to me. I've checked the same boxes I've always checked.

For many years (at least back to 2010) TurboTax has always asked the follow question for a 1099-R that has a code 1,2 or 7 in box 7 and the IRA box is not checked and you select that it is a qualified retirement account. If you choose the box 2a method you are done. If you choose another amount then you get the simplified method questions.