topic Retired military pay is an unqualified plan in Retirement tax questions

Retired military pay is an unqualified plan

carolandbillr — Fri, 07 Mar 2025 14:37:12 GMT

I have Retired military pay but Turbo Tax only allows me to choose if distribution is from 403(b) plan or another type of qualified retirement plan. Retired military pay is unqualified plan, but that is not an option, and it shows as an error if I select qualified retirement plan - it will not let me submit my taxes...very frustrating.

Re: Retired military pay is an unqualified plan

AmyC — Fri, 07 Mar 2025 23:42:09 GMT

Military retirement is a non-qualified plan. I think you missed a step. Follow these steps:

Edit the 1099-R,
select not an IRA,
choose the state,
select federal government retirement benefits,
select non qualified plan
done

Re: Retired military pay is an unqualified plan

gayleve — Sat, 15 Mar 2025 20:34:18 GMT

Hello! After applying the steps you outline, the system requires more steps. can you please advise?

after inputting 'non qualified plan' the system still sends you to a screen that asks for "Was This Distribution From a 403(b) Plan?" and only offers "qualified plans". How do we solve this?

I imagine that there are thousands of customers who are retired US military who are stuck as we are. can you please advise? thanks~!

Re: Retired military pay is an unqualified plan

SharonD007 — Sat, 22 Mar 2025 01:52:55 GMT

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.