topic why does turbotax treat a defined benefit pension payment as an annuity payment. An annuity is not a pension payment. in Retirement tax questions

why does turbotax treat a defined benefit pension payment as an annuity payment. An annuity is not a pension payment.

chjeffrey — Sat, 14 Feb 2026 12:27:20 GMT

Re: why does turbotax treat a defined benefit pension payment as an annuity payment. An annuity is not a pension payment.

SteamTrain — Sat, 14 Feb 2026 14:46:59 GMT

@chjeffrey

Yeah, a confusing change in their generic labelling text from how they displayed that page in prior years.

Ignore the term if you can.

I guess that , in a certain sense, even regular pensions are "annuitized".

Re: why does turbotax treat a defined benefit pension payment as an annuity payment. An annuity is not a pension payment.

chjeffrey — Sun, 15 Feb 2026 12:48:13 GMT

they didn't just refer to a pension payment as an annuity, which is confusing in itself, but the next screens ask for information (start date, initial cost, etc.) that apply to annuities, not to pension payments. Not including this irrelevant information then prevents a filer from completing the return and filing electronically.

Re: why does turbotax treat a defined benefit pension payment as an annuity payment. An annuity is not a pension payment.

SteamTrain — Sun, 15 Feb 2026 14:35:30 GMT

@chjeffrey

You might need to delete the entire form and enter again from scratch.

And enter it manually "Type it in myself"

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If your box 2a has a non-zero number in it..(not blank, nor marked as undetermined), and that number is somewhat lower than the box 1 number, due to an after-tax contribution amount that is noted in box 5...then edit that retirement form again, and when you get to the following page (below), answer it as-if the displayed edits were present (i.e. you needed to answer YES).

Answering YES will use the box 2a $$ amount on your for 1040. Check lines 5a and 5b before and after entering that 1099-R.

But if you answered No to that question, and already entered some $$ in the "General" or "Simplified" calculation area ,you might need to delete your 1099-R first and re-enter it from scratch.t though)

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