1099R Hawaii

[MM-CV]

If I enter a RMD for a pension plan from the Hawaii,  Turbotax forces me to answer questions about an annuity.  But this pension is NOT an annuity. 

I followed the online Turbotax instructions to delete and re-enter the 1099R.  After  deleting this 1099R, I saved and exited Turbotax and waited about half an hour.  Then I opened Turbotax again and entered the 1099R. 

  But the same thing happened again. 

If I did not enter an RMD, everything was fine.  But I read online that once a pension recipient is over 72 1/2, the pension falls under RMD rules.  Since  the pension recipient is older than 73. I entered the RMD. 

  And aghin,  Turbotax is still insisting  I answer questions as if the pension were an annuity. It is NOT an annuity, but Turbotax won't let me finish the return unless I answer annuity questions that are irrelevant.  .

  What to do?     

[ReneV4]

You will need to review your answers. If your plan is a 401(a), you should not check the box that says "Yes, this is a 403(b) plan." 

If you do, you are effectively telling the software, "I have a Tax-Sheltered Annuity," which triggers the confusing questions about annuity start dates and cost basis.

Follow these steps to bypass the annuity loop:

1. On the 1099-R entry screen, make sure Box 7 matches your form (likely Code 7 or Code 1)
2. Ensure the "IRA/SEP/SIMPLE" box is unchecked (since it's a 401a, not an IRA)
3. When the software asks, "Was this distribution from a 403(b) plan?", select "No, it's another type of qualified retirement plan"
4. By selecting No, the software should treat it like a standard pension or 401k distribution and skip the "Annuity" questions entirely

Regarding the RMD questions, follow these steps to complete the RMD section:

1. Continue through until you reach, "Let's get more information about your Required Minimum Distribution (RMD)", enter your distribution as your RMD
2. How much of the distribution applied to your December 31, 2025 RMD? Choose "the entire distribution applied..."
3. You will reach "Review your 1099-R summary", press Continue (not the pencil) and additional questions will generate for you to answer
4. When you reach "Let's go over any required minimum distributions (RMD)", Continue (not the pencil)