1099-R software issues errors & no Non-qualified distribution option 1099-R's

[mdmaypa]

what does Distribution Code 7D on Form 100-R mean

[Purtellr]

7-D means it’s money from a annuity that is qualified account

[Purtellr]

I’m feeling your pains.   

[carolbogdan2]

Per the standard 1099-R form, Box 7:  code 7 and code D. 

Box 7. The following codes identify the distribution you received: 

Code 7 = Normal distribution

Code D =Annuity payments from nonqualified annuities that may be subject to tax under section 1411. (1411 NIT-Net Investment Income tax for income over 250K there is a 3.8% additional tax imposed.)

**You can see the box codes for the 1099-R's on the IRS website if you don't have them listed on the back side of your 1099-R's.   go to  " https://www.irs.gov/pub/irs-pdf/f1099r.pdf  " Hope that helps. 

The Code "D" is what is causing the TurboTax software issues I was having. Hopefully it will be fixed by Monday.  

[DoninGA · Accepted solution]

---

@Purtellr wrote:

7-D means it’s money from a annuity that is qualified account

---

Just did a test 1099-R with a code of 7D in box 7 using the online editions.  Selected Non-Qualified Plan.  The program completed the 1099-R section with no errors.

[carolbogdan2]

Yeah!!  Looks like this actually worked.  I did have to delete and re-enter the 1099-R's and I kept the rounding to even dollars just in case that is still an issue.  Thanks for the update!  

[carolbogdan2]

It finally works online after deleting and re-entering the 1099-R's but I won't actually be filing until next week.  Let's hope the fix stands.  Good Luck.

[Purtellr]

You’re saying it passed the program review.  But don’t know if IRS will accept it yet 

[carolbogdan2]

Correct.  

[LUMBER1]

When I import the file for the Annuity, box 7 has 7D entered, which shows up as Annuity payments from nonqualified annuities. There is no option for defining it as a qualified account plan.

When doing the MN State program, it is hung up on having me Select the type of pension.

None of the above (9 choices) doesn't work.

TurboTax needs more information about it.

[DoninGA]

@LUMBER1 After completing entry of the Form 1099-R there are a series of screens asking various types of questions.  One of the screens asks What kind of retirement plan?  There are options to select either a Qualified Plan or a Non-qualified plan.  Which one did you choose?

[LUMBER1]

I entered the form1099-R data into the Deluxe program, and box 7 had the code 7D.

Everything seemed to go OK with the Federal program.

When doing the Minnesota state taxes, the program asks for more information about this annuity.

The nine choices are specific to Minnesota, but none of them had a reference for what D is.

The designation D has it listed as Annuity payments from nonqualified annuities that may be subject to tax under section 1411.

If I choose None of the above on the state program, it just loops back asking for more info.

[carolbogdan2]

My Federal return was successfully accepted by the IRS today, still waiting on acceptance of my MA state return.  Unfortunately I lost $71 of discounts during all the software issues.  Hope you were able to finally file.

[AG761]

tried to put in  no entry instead of other and it keeps going back to other. Cant seem to change it. 

My answer to" was this a distribution from403 b plan "is no. "is it another qualified plan "Yes. which it is. It is a qualified pension plan .I am still getting needs review. Been on the phone with TT 3 different times and it still isn't corrected. I have been using TT for years and never had this problem. I'm ready to get refund and go elsewhere to get my taxes done. Is obviously a glitch in their system. Very frustrating especially for a senior citizen!

[DoninGA]

@AG761 Delete the Form 1099-R and re-enter manually.

Also, if you are using the TurboTax desktop editions make sure the software is at the latest release.

Click on Online at the top of the desktop program screen.  Then click on Check for Updates.