Widower in NY has been collecting his wife's pension benefits for several years, the pension qualified for the NYS municipal pension exclusion. TIAA has been the administrator all along and continues to be after the consolidation of accounts completed last year.
Previously, 1099R forms have been marked in "death related benefit" [box 7, code 4]. This year, because of a consolidation into a rollover IRA account, the 1099R issued by TIAA reads "IRA-normal benefit distribution" [box7, code 7, "X" indicating it is an IRA account].
Question: Can this IRA withdrawal still qualify for the unlimited municipal pension exclusion? Ordinarily IRA accounts in NY are subject to the only a much more restrictive $20,000 retirement exclusion.
Donald W. Rifkin, CPA, CFP, PC
1 University Plaza, Suite 108
Hackensack, NJ 07601
[voice] 201-646-0020 [cell] 201-906-5567