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Question

Is the military Survivor Benefit Plan (SBP) considered a qualified or non qualified annuity? Note, premiums for SBP are non-taxable.

Forum|Forum|1 year ago
March 15, 2025
1 reply
0 views

Understand military retired pay is non qualified, but SBP annuities appear to have elements of both qualified and non qualified annuity plans. Confusing at best

TurboTax Online

The military Survivor Benefit Plan does not meet all the requirements to be a qualified plan. The plan is non-qualified. Yes, the premiums were paid pre-tax from the military retirement pay and thus taxable at benefit distribution. Beneficiaries will receive a 1099R to be reported on the tax return. When asked in the follow on questions in the 1099R entry section in TurboTax, you would select "non-qualified plan."

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