The taxable amount, Box 2a, is not listed on my 1099-R. What do I enter?
Usually, you simply enter what's on your paper Form 1099-R, Box 2a. If you enter an incorrect amount in Box 2a, your tax return will be incorrect.
IRA Distribution
When it's an IRA distribution, don't worry about Box 2a. Our software calculates the taxable amount from Box 1 (gross distribution) and the IRA details you provide after the 1099-R screen
Pension or Annuity Distribution
When it's a pension or annuity distribution, Box 2a controls what's taxed. The amount you enter in Box 2a on the 1099-R screen is what will be reported as taxable income.
If you have a pension or annuity distribution and the payer left Box 2a blank on your Form 1099-R, you'll need to calculate how much of your pension distribution is taxable and enter that amount in Box 2a. The full amount of the pension distribution is usually taxable, so typically you will enter the same amount from Box 1 gross distribution into Box 2a taxable amount.
If you did a direct rollover of your pension account to another qualified pension plan, then Box 2a will usually be blank and should be left blank.
Most pension distributions are fully taxable. If you made after-tax contributions, part of the pension distribution isn't taxable. Use the Simplified Method Worksheet in the IRS Form 1040 instructions to compute the taxable amount and enter that in Box 2a.
Here are some additional notes on after-tax contributions:
IRA Distribution
When it's an IRA distribution, don't worry about Box 2a. Our software calculates the taxable amount from Box 1 (gross distribution) and the IRA details you provide after the 1099-R screen
Pension or Annuity Distribution
When it's a pension or annuity distribution, Box 2a controls what's taxed. The amount you enter in Box 2a on the 1099-R screen is what will be reported as taxable income.
If you have a pension or annuity distribution and the payer left Box 2a blank on your Form 1099-R, you'll need to calculate how much of your pension distribution is taxable and enter that amount in Box 2a. The full amount of the pension distribution is usually taxable, so typically you will enter the same amount from Box 1 gross distribution into Box 2a taxable amount.
If you did a direct rollover of your pension account to another qualified pension plan, then Box 2a will usually be blank and should be left blank.
Most pension distributions are fully taxable. If you made after-tax contributions, part of the pension distribution isn't taxable. Use the Simplified Method Worksheet in the IRS Form 1040 instructions to compute the taxable amount and enter that in Box 2a.
Here are some additional notes on after-tax contributions:
- After-tax means your W-2 wages were not reduced by your contributions.
- Annuities are often funded with after-tax dollars.
- Most pension plans, such as 401(K)s, are not funded with after-tax dollars and are fully taxable when you receive the distribution.
