I have a 2024 1099R for an NUA in-kind distribution of my company stock from my 401k provider to an external brokerage account. None of this employer stock was sold in 2024. My 1099R has values in Box 1 - Gross distribution, Box 2a - Taxable Amount (cost basis), Box 6, NUA, and Box 7 distribution code is 2. (retired from my employer after age 55, but not 59 1/2 yet). After entering this 1099R, TurboTax tells me "Congratulations, no additional tax ....".
On my 1040 Line 5a includes the Box 1 amount, however, Line5b is blank - not the taxable cost basis amount in Box 2a.
From Net Unrealized Appreciation (NUA): Tax Treatment & Strategies - TurboTax Tax Tips & Videos, under Key takeaway #3 "However, your cost basis in the stock is taxed as ordinary income for the year of the distribution."
Can someone confirm this is an issue? Is there a better way to submit a bug report against TT?