Colorado Pension exclusion

[charlesyon70]

Turbo Tax did not exclude my spouse's 2019 IRA withdrawal on CO form DR 104AD line 4.  The Instructions indicate IRA withdrawals qualify for the exclusion so is this a TT glitch or for some reason did I not enter the data correctly:?

[DianeC958]

The exclusion for Colorado is only for pensions and annuities the withdrawal from an IRA does not count as a pension or annuity.

Colorado's Retirement Pension or Annuity Exclusion

[charlesyon70]

Now I am confused. The instructions for CO form DR104 AD  page 1 indicate that "IRA distributions and pensions and annuities (including disability pensions" are the types of income eligible for the Pension and Annuity Subtraction.

Please clarify.

[KatrinaB48 · Accepted solution]

According to the Colorado instructions, certain IRA distributions are eligible. However, the distribution must be included in your federal taxable income and it must been received after reaching your normal retirement age of 59 1/2. If your wife has been penalized for taking an early withdrawal, then the IRA distribution does not qualify. Please see my screenshot below for reference to this rule.

[charlesyon70]

That is the instruction that prompted my original question. There have been no early withdrawals from my wife's IRA. 

[charlesyon70]

KatrinaB48:
Thanks for all the info.  After reviewing the return I decided to delete the 1099R and re-input it.  This time it included the distribution in the exclusion.  I am not sure what happened but everything good now.