What does it mean if the taxable amount is not determined on my 1099-R?
If the box is checked indicating that the taxable amount is not determined, the payer was unable to determine the taxable amount. We can help you determine what you should put as the taxable amount in Box 2a.
IRA Distribution (IRA, Roth IRA, SEP IRA, and SIMPLE IRA)
For an IRA distribution, leave Box 2a empty if you don't know the taxable amount. Our software calculates the taxable amount by using the gross distribution you enter in Box 1 of the 1099-R screen and the information you enter about your IRA account on the following screens.
Pension or Annuity Distribution (401(k), 403(b), 457(b))
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. 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. The amount you calculate on Line 9 of this worksheet is the taxable amount you should enter in Box 2a.
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.
IRA Distribution (IRA, Roth IRA, SEP IRA, and SIMPLE IRA)
For an IRA distribution, leave Box 2a empty if you don't know the taxable amount. Our software calculates the taxable amount by using the gross distribution you enter in Box 1 of the 1099-R screen and the information you enter about your IRA account on the following screens.
Pension or Annuity Distribution (401(k), 403(b), 457(b))
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. 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. The amount you calculate on Line 9 of this worksheet is the taxable amount you should enter in Box 2a.
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.
