1099R

johndeininger — Sat, 08 Mar 2025 15:03:12 GMT

I have a 1099R which has an amount in box 1 and box 2a box 7 code is 4D and it is non qualified. What amount is used for taxes in Pennsylvania box 1 or Box 2a. When I get to the portion in turbo tax it says we need more info on 1099 the software puts pa code n ito the box and it appears red

do I leave it as N No entry or should I use K2 Non-qualified deferred compensation plan
thank You

john

Re: 1099R

JamesG1 — Tue, 18 Mar 2025 15:13:39 GMT

In TurboTax Deluxe Desktop, I am not seeing PA code n.

At the screen What kind of retirement income do you have from Pennsylvania, did you choose Annuity?

At the screen Tell us about your retirement income, what did you select as Basis of Retirement Income?

The Learn more hyperlink states:

Your basis is the total of your previously taxed contributions to this retirement plan. If all your contributions were made while you lived in PA and/or with a PA employer, then your basis is usually the amount of the distribution. If you put the money into your retirement account while living or working in another state the amount contributed may have been contributed pre-tax and would not be considered in your PA basis calculation.

Pennsylvania PA40 Instructions, page 13, states:

CAUTION:

Distributions from a commercial insurance or mutual company annuity (Code D also included with Code 7) purchased as a retirement annuity are not distributions from an eligible employer-sponsored retirement plan and are taxable as interest income to the extent they are included in federal gross taxable income. 1099-R Code 7D distributions are taxable to the extent they are taxable for federal income tax purposes as interest income on Line 11 of PA Schedule A. See Annuities, Life Insurance or Endowment Contracts beginning on Page 14 and the 1099-R Filing Tips beginning below for additional information.

topic 1099R in Retirement tax questions

1099R

Re: 1099R