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Returning Member
posted Dec 12, 2022 2:35:12 PM

turbo tax has a canadian rgistered pension page, it asks for total distrbution and taxable part, what is the diff between the two

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2 Replies
Level 15
Dec 12, 2022 4:10:37 PM

@pk ?

Level 15
Dec 14, 2022 2:13:01 PM

@roscr  in the US  the pension plans  often have a contributory portion  either tax deferred  or after tax  monies.  The  after tax contribution is amortized over the life of the pension distribution/ beneficiary.  Thus  all distributions  are broken into two parts  --- portion that has already been taxed  ( i.e. allocated  portion of the  pre-taxed contribution based on amortization schedule ) and portion that is now taxable  consisting of the employer contribution, growth etc..   Thus  total distribution is the total monies distributed ( for the tax year )  of which  taxable portion is  Total  LESS allocated  individual's contribution.  Thus when you are recognizing a pension distribution  from any source  ( qualified pension schemes ), Turbo is asking to fill in the 1099-R  information i.e. total amount distributed  and the allocated  taxable portion  ( i.e.  Total less allocated  after tax  contributory portion ).

 

Does this make sense ?

Is there more I can do for you ?

pk