topic Re: 1099R and Simplifiied Method in Tax law changes

1099R and Simplifiied Method

DesertDenizen — Fri, 06 Mar 2026 22:30:37 GMT

My wife retired on disability in 1988 when she was 33. She is now 71. Minimum regular retirement age was 55. For years now Line 2a of her 1099R has shown UNKNOWN. Turbo Tax has always handled this correctly, presenting a screen which required entry of the youngest retirement age at which my wife could have retired (55), and a screen reminding me that the Simplified Method was used the previous tax year and must be used for the current tax year. Additionally, the 1099R in the Forms section allowed you to select Line 2b Taxable Amount not determined. In Turbo Tax Deluxe 2025 these screens/features do not exist. All of which, I believe, contributes to the problem I have encountered which is that Turbo Tax is stating that the Simplified Method cannot be used because my wife has not reached minimum retire age. The exact wording is as follows: "Simplified annuity starting date should not be completed. Distribution Code 3 in Box 7 indicates that this distribution results from disability and the recipient is below the minimum retirement age. The Simplified Method calculation cannot be used as the recipient does not begin recovering costs until minimum retirement age is reached. Please verify the codes in Box 7 or remove your entries on the Simplified Method Worksheet."

Is there something I am missing or is this, perhaps, a software issue? Thank you for any insight you may offer.

Re: 1099R and Simplifiied Method

ReneV4 — Sun, 08 Mar 2026 22:05:15 GMT

It sounds like the Code 3 being used in Box 7 may be causing the age calculation error and the subsequent "Simplified Method" error message. To clear this error, take the following steps:

Since you are using the Desktop version, go to Forms Mode and click on your Form 1099-R on the left, then scroll down until you see Section E under Pension and Annuity Distributions Only

If the box, "Disability Payments - Minimum Retirement Age" box is checked "Yes", change it to "No".

Next, scroll down just below Section E to find the Simplified Method Smart Worksheet and Sections A-C:

A Here, answer "No" if the annuity is not payable on the life of more than one individual.

B Enter the age of the annuitant at the annuity start date

C Enter the age of the youngest survivor annuitant (if applicable)

Note: If the above does not clear the error message, select Delete Form at the bottom left of the screen and re-enter your Form 1099-R, but use Code 7 (normal distribution).

Re: 1099R and Simplifiied Method

DesertDenizen — Tue, 10 Mar 2026 22:42:55 GMT

Thank you. Your solution worked! In Forms Mode selecting No , the annuity is not payable on the life of more than one individual cleared the error message. Before doing so both Yes and No boxes were blank.😊