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February 14, 2024
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I'm a retired police officer . I withdrew $3000 from my 457 plan and $3000 from my police pension. The $6000 went towards my insurance. Turbo tax shows its wrong?

  • February 14, 2024
  • 1 reply
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Both ($6000) went directly to the insurance company. Turbo tax shows form 1099R line 26d should not be greater than $3000?
Best answer by dmertz

A maximum of $3,000 combined is permitted to be claimed for insurance premiums, regardless of how much actually went to pay for insurance.  A maximum of $3,000 is excludible from income as payments for the insurance.  For one of the Forms 1099-R ... probably best that it's the one for 457(b) distribution ... remove the indication that $3,000 went to pay insurance premiums, leaving only $3,000 on line 26d of the 1099-R Summary.

1 reply

dmertzAnswer
Employee
February 15, 2024

A maximum of $3,000 combined is permitted to be claimed for insurance premiums, regardless of how much actually went to pay for insurance.  A maximum of $3,000 is excludible from income as payments for the insurance.  For one of the Forms 1099-R ... probably best that it's the one for 457(b) distribution ... remove the indication that $3,000 went to pay insurance premiums, leaving only $3,000 on line 26d of the 1099-R Summary.