DaveF1006
Expert Alumni

Get your taxes done using TurboTax

The best method to account for the cost basis is to. 

 

  1. Calculate the amount of the basis accumulated over the years.
  2. Subtract this from the gross distribution on line 1 and then report the remainder as taxable income in Box 2A of the 1099R. The remainder represents taxable earnings that needs to be reported as income.  
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