topic Retirement Income. Three Year/General method or Do Not Apply in Retirement tax questions

Retirement Income. Three Year/General method or Do Not Apply

knuckles1742 — Tue, 10 Feb 2026 00:39:17 GMT

I have two retirement related sources of income to report, but I am not sure I am entering them properly. One is a lump sum distribution received as an inheritance from a recently passed relative's 403b plan. The other is a lump sum from my own 401k. What are the proper classifications of these distributions? Should they be marked as Three Year, General Method or classified as None of the Above?

Re: Retirement Income. Three Year/General method or Do Not Apply

ReneV4 — Tue, 10 Feb 2026 18:29:15 GMT

It sounds like you've reached a section with questions pertaining to older versions of pensions. You should likely select "None of the above".

Your two retirement related sources of income are reported separately, with each having its own Form 1099-R.

As you review or revise the entries to your Form 1099-Rs, select "No" when asked about periodic payments, which often triggers the additional questions about taxable amount method.

Also, pay close attention to the Box 7 Code used in each of the Form 1099-Rs.

A distribution from an inherited retirement plan will typically have Code 4 (which tells the IRS this is an inheritance and you will not owe an early withdrawal penalty, regardless of your age).

A distribution from your 401k plan, on the other hand, will typically have a Code 7 (if you are at retirement age), or Code 1 (if you are under age 59 1/2).

Re: Retirement Income. Three Year/General method or Do Not Apply

knuckles1742 — Wed, 11 Feb 2026 14:48:06 GMT

Thanks!

Does choosing "None of the above". also pertain to the lump sum distribution I took from my 401k? Your response is not clear on that. I want to get it right since the choice impacts my state tax obligation.

Re: Retirement Income. Three Year/General method or Do Not Apply

LeticiaF1 — Wed, 11 Feb 2026 18:44:38 GMT

Yes, you would select "None of the above" unless some of the options in that section apply to your situation.

@knuckles1742