CALPers Pension 1099-R promts Turbo Tax to treat it as an annuity

Forum|Forum|1 year ago
February 1, 2025
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I retired in 2013 from a state university and have since then received a monthly pension from CALPers and will until I die. It is NOT an RMD, nor is it an Annuity, or an IRA, but Turbo Tax just defaults to treating it as an "annuity"wanting information that is not relevant. How do I enter the 1099-R for this Pension plan correctly without triggering a bunch of questions like how old was I when I started getting the "annuity".. and what "method" is used? It is actually a pension paid to me with federal and state taxes taken out each month and will continue until I die. As I understand it, an Annuity is a fixed amount which is decreased over time by withdrawals until it is depleted....which is NOT what my pension is. Help?

VolvoGirl

Employee

What code is in box 7 on the 1099R? I get CalPers too. Say all of it is the RMD. If you have a RMD requirement it will ask you if it is the RMD. Say yes and enter the amount as the RMD amount. The pension doesn't need to calculate any RMD. Anything your pension pays you is considered to be the RMD. Traditional pensions automatically fulfill the rules of an RMD. So just enter the same amount in box 1 for the RMD for each 1099R.

RLM2047Author

Thankyou for your reply... Box for distribution code shows "7"

I'll try your suggestion...I am certain there are many in my same situation who are thrown off by the "annuity" wording and direction on this. Wish TurboTax would just ask if it is an annuity or a pension and then use the correct terminology for the rest of the entry process for that particular 1099-R.

VolvoGirl

Employee

I don't get any questions about "Annuity" when I enter my CalPers pension. Do you get these questions?

Was this withdrawal an RMD for 2024? - Answer Yes some or all was an RMD

Then how much applies to the RMD - Say ALL of the distribution was an RMD

Then enter the amount from box 1 of that 1099R

Then for Any Periodic Payments - Probably should check YES

Oh then it does ask Is 2024 the first year?

OH there is a question - was the amount in box 2a used as the taxable amount? You should probably enter YES. If you answer No you will get the Annuity question.