topic 401 K DISTRIBUICION in Retirement tax questions

401 K DISTRIBUICION

lulu_b66 — Mon, 13 Apr 2026 00:03:05 GMT

TEACHER RETIREMENT SYSTEM OF TEXAS Annuity start date 01/08/2023 should not be completed. The IRA/SEP/SIMPLE box is checked and the Simplified Method cannot be used for IRA distributions.

Re: 401 K DISTRIBUICION

MaryK4 — Mon, 13 Apr 2026 00:24:08 GMT

The error occurs because the Teacher Retirement System of Texas (TRS) is a qualified pension plan, not an IRA, but your entries in TurboTax have incorrectly flagged it as such. The Simplified Method is used to calculate the taxable portion of a pension or annuity, but TurboTax blocks this method if the IRA/SEP/SIMPLE box is checked, as IRAs use different tax rules.

To resolve this, you must "reset" the 1099-R entry so the software correctly identifies it as a government pension.

Delete the Current 1099-R:
- Navigate to Federal > Wages & Income.
- Find the Retirement Plans and Social Security (1099-R) section and select Edit/Add.
- Click the Delete (trash can) icon next to the TRS Texas 1099-R.
Re-enter the 1099-R Manually:
- Choose to Add another 1099-R and enter the data exactly as it appears on your printed form.
- Ensure the IRA/SEP/SIMPLE box is NOT checked in TurboTax unless it is actually checked on your physical 1099-R from TRS. For most TRS pensions, this box should be blank.
Navigate the Follow-up Questions:
- When TurboTax asks "What type of plan is this?", select Government Pension or Employer Retirement Plan, NOT IRA.
- If TurboTax asks if the taxable amount in Box 2a is correct, and a number is present on your form, select YES. This allows TurboTax to use that amount directly and skip the problematic Simplified Method worksheets entirely.
- If Box 2a is blank or marked "Undetermined," answering NO will then correctly trigger the Simplified Method without the IRA error.

Re: 401 K DISTRIBUICION

dmertz — Mon, 13 Apr 2026 00:29:58 GMT

The Teacher Retirement System of Texas is not an IRA. A Form 1099-R for a distribution from that system would not have that IRA/SEP/SIMPLE box marked, so it should not be marked on TurboTax's form.

If the Form 1099-R that you received has the IRA/SEP/SIMPLE box marked, it is a distribution from a traditional IRA, not from the Teacher Retirement System of Texas. If this form is from an IRA as indicated by the IRA/SEP/SIMPLE box being marked on the Form 1099-R provided by the payer, delete and reenter this Form 1099-R in TurboTax.