Distribution from Inherited non qualified annuity not being handled correctly by Turbotax Home & Business for 2024

[Carlin1]

Oh, also: I'm using the on-line software.  It seems to be taking longer for a fix...

[MarilynG1]

Choose 'other qualified account' for your 1099-R entry.  The IRS considers all 1099-R's to be distributions from a retirement account, so even though an inherited annuity is not exactly that, it's considered to be in that category,  and they're all taxed the same regardless.  Just be aware if there is a different amount in Box 1 than Box 2a.

If you're using TurboTax Online, be sure to clear your Cache and Cookies before returning to this section.  You may want to delete/re-enter your 1099-R. 

Here's more info on Distributions from Pensions, Annuities, Retirement Plans.

@rkingrea 

@Carlin1 

[Carlin1]

Hi MarylinG1,

I have tried all of your suggestions, to no avail.  Here is the do-loop I am in:

When I get to the - Is this a 403(c) or other qualified account - question (those are the only two choices, even though the answer is neither) - I choose other qualified account.  That allows me to complete the entry process.

Then, when I go to Federal Review, it gives me an error from the RMD Excess Accumulation Worksheet saying "Type of account should not be selected for this distribution".  It shows "Other" as selected.  I change the selection to "No Entry".  Then the next time I run the Federal Review, it gives me an error on the 1099-R entry saying that I must choose either 403(c) or Other.  

I have been in this do-loop now for many days.  I have been on the phone with two experts, and I've received this suggestion from you.  At this point, the Turbotax software has an obvious error that is preventing me from completing/filing.

Many thanks for continuing to look into this situation.

Carlin

[rkingrea]

I followed the instructions and still have the same do-loop. Clearly there is a problem with the online program.

[Carlin1]

Hi MarilynG1,

Any updates on Turbotax correcting the software error?

Thanks,

Carlin

[Carlin1 · Accepted solution]

rkingrea,

The software has been updated and you can now select a non-qualified option.

Carlin