Question

MD State Retirement Pickup Contribution

Forum|Forum|5 years ago
March 21, 2021
2 replies
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Reference: Federal Taxes/Wages & Income: Where Is This Distribution From?

I've entered the source as MD State Retirement Agency Pickup Contribution

Intuit software lists "Pickup contribution - State Retirement Pickup - Box 17"

My MD State Retirement Agency 1099-R shows pickup contributions in Box 19, not Box 17. (Box 17 is Local Tax Withheld). Why the difference?

D

dmertz

Employee

For 2020 the IRS renumbered box 17 to be box 19. TurboTax developers failed to make the corresponding update to the text.

P

parrish21214Author

Thanks. I'll proceed accordingly.

E

Englander2022

Was this question related to whether a Maryland state pension (source) was from pick up contributions as I am unsure whether to check that box or "none of the above"?

M

MAK70

Pick-Up Contributions-

The State Pick-up Program is concerned with the employee pension plan contributions made while working. It provides for the deferral of federal taxes when the contributions are made, but makes them taxable when received in the pension. Since this program only defers federal taxes at the time the contributions are made, state income taxes were deducted. The consequence in retirement is that the state income tax is deferred until the pick-up contributions are recovered.

See SRPS Retiree News and Notes page 3 for more info.

@Englander2022

E

Englander2022

I am not sure why Turbotax is asking for the source of my State Pension income for 2021 and asks if it is from Pickup Contributions. Not sure how to answer that question. Should there be something on the 1099-R that corresponds to the letters in Turbotax regarding the source?