The payer (or administrator) of my pension plan changed in 2025. I received my monthly pension from Northern Trust for 5 months and then from Pacific Life for 7 months in 2025.
I have been receiving this pension for the last few years. It is from a qualified plan.
When TurboTax asks during the interview process was this the first time I received monies from this payer (in this case Pacific Life) do I answer yes or no? It is the same pension, just coming from a different administrator and it is not the first year I stared receiving monies from this pension.
You will answer NO since this is not a new pension, just a new administrator. TurboTax asks the question to determine the taxable amount, and then creates the Simplified Method or General Rule to calculate the basis (nontaxable) portion. If you are asked for the original start date for the Northern Trust 1099-R, use the date that the original pension started- this should calculate with the same taxable amount as the original 1099-R.
You will answer NO since this is not a new pension, just a new administrator. TurboTax asks the question to determine the taxable amount, and then creates the Simplified Method or General Rule to calculate the basis (nontaxable) portion. If you are asked for the original start date for the Northern Trust 1099-R, use the date that the original pension started- this should calculate with the same taxable amount as the original 1099-R.