Non-qualified annuity disbursement considered pension/401K payment in NJ

Forum|Forum|2 years ago
March 14, 2024
2 replies
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I have a 3-year non-qualified annuity and took a partial (10%) distribution from it in 2023. I received a 1099-R and for some reason TurboTax NJ considers it retirement related and is adding it to my other pension proceeds. The Federal form is fine. This results in an error with the NJ form Part D General Rule method (Part D line 2). Note that for the source of the distribution I checked the box for “None of the above” – I did NOT check the box for “General rule pension or 401(k) benefits”. Is there an obvious mistake on my part or any suggestions to correct this?

TurboTax Premier Online

Steve-NJAuthor

Forgot to mention that I also entered the Distribution codes 7 and D. Any advice?

RobertB4444

If this annuity was reported to you on a 1099-R then it is pension income despite being non-qualified and is being reported correctly.

@Steve-NJ

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Steve-NJAuthor

Thanks for clarifying. I just don't understand why because it was purchased from a regular taxable account that had nothing to do with a pension or 401K. I'll follow up with them.

Steve-NJAuthor

In another TT Q&A I saw that deleting a state filing and creating a new one could "reset" the form and correct some apparent errors. I tired that and it worked! The error with the NJ form Part D General Rule method (Part D line 2) disappeared and the NJ state filing is good and has no errors.