1099-R for Annuity gets error during review

[george.hetrick]

When I import the 1099-R, it forces me to choose type of account as 403b or other, so I select other. When TurboTax hits the review stage, I get the error shown below. Changing the Account type to "No Entry" has no effect.

How do I fix this? I've tried deleting and reimporting the 1099-R to no avail.

Form 1099-R (NEW YORK LIFE INSURANCE & ANNUITY CORP. NY): Type of account should not be selected for this distribution.

No entry ( )Type of account - IRA ( )Type of account - 403b (*) Type of account - Other

[george.hetrick]

TurboTax seems to have issues with RMDs when looking at an annuity. I don't think RMDs even apply, but it forces questions about RMDs, and no answer seems to be satisfactory.

[george.hetrick]

Oh, I should say this is using the TurboTax on the web, not the TurboTax app.

[george.hetrick]

Ah, searching for "RMD Excess Accumulation Worksheet", I see this is a known bug. I just have to wait  for a resolution.

[blackestate]

Same issue here. How long do we have to wait? Can I get a refund and do them on another app? Or will it have the same issue

[LaceyL]

If you have a non-qualified plan and TurboTax is asking about a 403(b) and you are getting an error:

mark 'No, it's another type of quailfied retirement plan'

enter your RMD or $0 if none

Go through the federal review

Check 'No entry' on the error that says Type of account should not be selected
It will still show Needs Review.  Continue through the review
When it asks do you want to talk with an expert, click yes

On the next screen, click I changed my mind, or skip or whatever it says to not talk with an expert

You should be able to bypass the error and e-file your return.

[george.hetrick]

It never asks me to talk to an expert. I uses go through the same reviews over and over

[LaceyL]

In the left hand menu skip past the state to the final review.  After the review is done, it should ask if you want an expert review.

[george.hetrick]

Doing the final review, it only asked me once about the issue, but then immediately continued to filing. It hadn't done that before.

At any rate, it works now! Thanks.

[mikej25]

I have the same problem with my non-qualified 7D annuity after doing this fix.  After doing these steps, I did another Review (just to be sure) before proceeding with filing and still get a "Needs Review" message.  i've also tried deleting/entering 1099r info and several other fixes. I've also noted that apparently this is a known problem.

Does anyone else have any other suggestions or know if this will cause your tax filing to fail if you ignore this "Needs Review" message?

Also, will 

[julie9753]

Having the same problem. Thanks for posting

[BrittanyS]

You can sign up for updates on this issue using the link below:

• Why am I getting an RMD distribution error?

@george.hetrick 

[mikej25]

This morning I tried again on my online tax return since I saw a TT message that a update had been made. This did NOT fix my problem. 

I deleted my 1099R info, saved my return, logged off/back on and re-entered all my 1099 info. on 3/16 10am PDT.  However, I still get a Needs Review” message when I Review.  After filling out the TT 1099R form with all supplied info for a 3 year tax deferred, NON-qualified annuity that matured in 2024 with a 7D distribution type I still keep getting a “Needs Review” message. 

The “Check This Entry” screen says “Type of Account should NOT be selected” on the Account type line in “RMD Excess accumulation” worksheet. I choose "NO ENTRY on this screen, but the “No Entry” does not stick and the Check this Entry screen shows "Other Type" when I do a final review before submitting my tax return which is not correct.

Is there an estimate on when will this problem be fixed (I've tried several workarounds for over a week with no luck)?  Also, if I file my return with this error message, will it be rejected by TT or IRS?

[margecliffman]

I am having the same issue. In my case a 1099-R reporting a non-qualifying fixed annuity total distribution from after tax funds/non-retirement. It continues to loop around in Distributions, and in final review continues to ask for review. There is no correct option to choose.

I put the question out to the community and received this response. 

SharonD007 (Employee Tax Expert) posted a new reply on March 17, 2025 2:14 PM:

Your experience has been forwarded to our TurboTax developers and they are working on a resolution.  There should be a resolution by the end of next week. Thank you for bringing to our attention.

[Sjaecee1]

Same problem here.  Several suggested workarounds require me to put in incomplete information, and I am not comfortable with that. TurboTax needs to get this fixed!