Retirement Pick-up Contribution

[Wendy Jou]

I've entered the Maryland State Retirement Agency Pick-up Contribution amount, it did not show reduction on the line, but the amount I entered was there (when I clicked on EDIT to see). The amount is not populated into line 13 as "r" on Maryland Form 502R. I have already submitted my tax return! Why did TurboTax not use my Pick-up Contribution amount for my MD State tax return?

[Cynthiad66]

Without reviewing the return entries, I would not be able to say why that entry was incorrect.  You can always amend the 2022 tax return for free using TurboTax to correct that issue.

The State Pick-up Program is concerned with the employee pension plan contributions made while working. It provides for the deferral of federal taxes when the contributions are made, but makes them taxable when received in the pension.

Your form 1099-R from the Maryland State Retirement Agency should report the amount of your pickup contributions in line 19. You would only have them if you participated in the State Pick-up Program wherein you would contribute money to your retirement plan, that would then not be taxed when you took your pension distribution.

If you used TurboTax Online, simply log in to your account and select “Amend a return that was filed and accepted.” If you used our CD/download product, sign back into your return and select “Amend a filed return.” You must file a separate Form 1040-X for each tax return you are amending.