I inherited and cashed out a LA teacher's retirement account. TT exempts it from my LA income but asking the age I retired- I'm the beneficiary! Am I doing it wrong?

Forum|Forum|1 year ago
March 6, 2025
1 reply
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I claimed the 1099-R on federal. There was confusion also about Box 16 on the 1099-R, which was blank but should have a number. Perhaps I do owe LA state tax on this since I am not over 65?

TurboTax Deluxe Online

SharonD007

Some retirement distributions that are inherited are taxable to the beneficiary to the IRS. It depends on whether the original owner made non-deductible contributions.

Refer to the TurboTax article Is an inherited IRA or retirement plan taxable? for more information.

According to the TRSL website TRSL Tax Information, retirement benefits aren't taxable to the state of LA. TurboTax will handle your retirement distributions.

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stbwestfallAuthor

It is taxable federally, but not taxable LA state. I had to manipulate Box 16 on my 1099-R to get it to exempt from LA state ( followed the advi ce below). However, when I go to review the LA state return, it asks me for the year of retirement to put on LA Schedule E. But I am not retired. Do I put the year the original account owner retired or is there another error?

mglauner

When you entered your 1099-R in the Federal section, you need to indicate that it is a State Teacher's Pension on the screen 'Where is this Distribution From?' The Box 16 amount would be the same as the Box 1 amount.

If you did so, Louisiana should automatically exempt the pension from LA taxes.

Otherwise, in the Louisiana state interview, you can exclude the income by choosing LA Teachers Retirement benefits on the screen titled 'Any Other Income Exclusions'.

If you're still asked for the retirement date, enter the deceased person's retirement date, and if you're asked for the RMD, indicate the total in Box 1.

If you're using TurboTax Online, close the program, clear your Cache and Cookies and return to the section and step through the interview screens again.

@stbwestfall