I have two annuities, nonqualified. Both sent me 1099-Rs with Code D in Box 7. TT exhorts me to enter exactly as shown, so I include the Code D. Then 3 bad things happen: (1) TT asks "Is this a 403(b) plan, or is it some other kind of qualified plan?" I have no choice but to say it's some other plan. (2) Then TT asks how much RMD I was required to withdraw from this plan. Meaningless, but I enter "0" and continue. (3) Then when I run SmartCheck, TT reports a 1099-R form error: "You indicated "other" - you need to indicate 403(b) or "No entry." I select "No entry" and the error goes away.
If, on the other hand, I lie and omit the D code, TT asks "Is this a Qualified Plan or a Nonqualified Plan?" and when I answer "Nonqualfied," all goes OK -- no screwy 403(b) question, no RMD question, and no SmartCheck error. (this is the way it used to work in the past when I did include the D code -- something changed recently).
So what is right way to proceed before filing with IRS...include the code or omit it?
