CALSTRS Annuity?

[DanaJW]

I manually entered information from my CALSTRS 1099R.  For the first time, TurboTax says “we found a few other questions about your situation.”  I have not previously experienced this.  The following questions are about the annuity yet CALSTRS pension is not really an annuity.  (Maybe this is a matter of semantics.). I did speak with a CALSTRS representative yesterday, and he said he has not encountered this.

I get to a page that has the following questions:

Annuity start date (if this is referring to my CALSTRS pension, I know this answer).

Plan cost (not sure  where I get this information or exactly what it means).

Number of months payments were received in 2025 (I know this answer)

Tax-free amount previously recovered (not sure how to answer or interpret this)

thank you in advance for your help

[ReneV4]

TurboTax will often ask these questions when Box 2a if blank, to determine if any of your pension is tax-free.

For the annuity questions, you already have the answer for several, so let's walk through each:

1. Annuity start date is when you received your first pension payment from CALSTRS
2. Plan cost is the total amount of after-tax contributions you made to CALSTRS during your teaching career
3. Note: If you have been receiving the pension for years and never claimed a tax-free portion, then your plan cost is possibly zero (0)
4. If you did not make any additional after-tax contributions (common), then you can input a zero (0)
5. Tax-free amount previously recovered is asking for the total of all tax-free portions of your pension that you have excluded from your income in previous years' returns
6. Note: If you have not been tracking your tax-free portion, you can input zero (0)

Therefore, if you have no after tax contributions, you can input zero (0) for the plan cost and tax-free amount previously required questions.

[DanaJW]

I appreciate your response. Before I continue on with TurboTax, you mentioned that the questions I have encountered happen when box 2a is blank. But I do have a number  in box 2a on my 1099-R for taxable amount,  which I entered manually on TurboTax.  So if this is the case, that I do have a number in box 2a, how should I continue?

Thanks again

[DanaJW]

Additionally, I just played around with some of the questions on TurboTax Regarding my CALSTRS entries.  One question that confuse me asks, “for the years you receive these distributions was the total amount shown in the form the amount you paid tax on?”

So originally I checked NO because there is a gross distribution dollar amount in box 1 And then a taxable amount in box 2a.  So I guess I was unclear regarding  the question asking about ” Total amount.”  when I check YES , on this page asking about total amount, then I don’t go down a rabbit hole with a bunch of additional annuity questions.

Of course I don’t know if I’m checking the right answer (yes or no) on the annuity information page that asks if the total amount is taxable.

Look forward to your help 

[DanaJW]

Good morning,

I am hoping someone will be able to help me with this problem so that I can finally complete my taxes.

Thank you in advance for your help

[SteamTrain]

@DanaJW 

Yep...you answer YES to that question....but if you already answered some of the follow-up questions after answering NO , initially, you may need to delete that 1099-R and start over

___________________________

Unfortunately, the question in the interview is misleading for your situation...

If your box 2a has a non-zero number in it..(not blank, nor marked as undetermined), and that number is somewhat lower than the box 1 number, due to an after-tax contribution amount that is noted in box 5...then edit that retirement form again, and when you get to the following page (below), answer it as-if the displayed edits were present  (i.e. you needed to answer YES).  

Answering YES will use the box 2a $$ amount on your for 1040.  Checking lines 5a and 5b on your form 1040, before and after entering that 1099-R, and the 5b amount should be lower than line 5a. 

_____________________________________

[DianeW777]

The plan cost is any money your contributed that you already paid tax on at the time of contribution. The meaning behind the questions is to eliminate paying tax on your after tax contributions (money you invested that you already paid tax on when it was contributed. 

• If you don't know and the plan administrator cannot tell you then you will enter zero.

Tax-free amount already recovered is the amount of that same contribution that was already recovered (not taxed) in the distributions from prior years. 

• If you don't know and the plan administrator cannot tell you then you will enter zero.

Please update if you have more questions. StreamTrain information is helpful for you as well.

@DanaJW 

[DanaJW]

This was incredibly helpful.  Thanks so much.

[DanaJW]

Thank you to Steamtrain and DianeW777