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Level 1
posted Jun 29, 2020 6:59:11 AM

3 year Rule

I'm doing Kentucky State taxes using TurboTax. The first screen is the following:

Pension and IRA Basis Differences

  Enter any addition to pension income due to the 3 year Recovery Rule.

 

I have no idea what the 3 year Recovery Rule is or how is applies to me.  What value am I suppose to be looking for to enter in this space?

1 2 623
2 Replies
New Member
Feb 15, 2024 7:46:09 AM

I don't understand how THE 3 YEAR RECOVERY RULE applies to me?

Level 15
Feb 15, 2024 10:18:46 AM

What state?

In NJ,the tax website explains how to use the 3-year and General rules on an NJ tax return.

You should consult your own state's information.

It only applies to 401k and other pension accounts, not to IRAs.