What do I enter in Box 2a for my pension or annuity distribution?
For a pension or annuity distribution, the amount you enter in Box 2a of the 1099-R screen is the amount our software will consider to be taxable income to be reported on your tax return.
If you have a pension or annuity distribution and the payer left Box 2a blank on your Form 1099-R, you will 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.
Rollovers
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.
Pension or Annuities Funded with After-Tax Dollars
Most pension distributions are fully taxable. However, if you made contributions to your pension plan or annuity using after-tax dollars, then part of your pension distribution will not be taxable. If the payer did not enter the taxable amount in Box 2a, or did not enter the correct taxable amount, you will need to calculate the taxable amount using the Simplified Method Worksheet from the IRS Form 1040 instructions. After-tax dollars means that when you made your pension contributions, your wages on your W-2 were not reduced by the pension contribution. Annuities are often funded with after-tax dollars. Most pension plans such as 401(K) plans are not funded with after-tax dollars and are fully taxable when you receive the distribution.
If you have a pension or annuity distribution and the payer left Box 2a blank on your Form 1099-R, you will 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.
Rollovers
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.
Pension or Annuities Funded with After-Tax Dollars
Most pension distributions are fully taxable. However, if you made contributions to your pension plan or annuity using after-tax dollars, then part of your pension distribution will not be taxable. If the payer did not enter the taxable amount in Box 2a, or did not enter the correct taxable amount, you will need to calculate the taxable amount using the Simplified Method Worksheet from the IRS Form 1040 instructions. After-tax dollars means that when you made your pension contributions, your wages on your W-2 were not reduced by the pension contribution. Annuities are often funded with after-tax dollars. Most pension plans such as 401(K) plans are not funded with after-tax dollars and are fully taxable when you receive the distribution.
