Have you gone through all of the follow-up questions that come up after you enter the 1099-R? The taxability of your retirement income is dependent on many factors, including your answers to those follow-up questions. Do not worry about what is in Box 2a.
Compare your 1040 from last year to this year's 1040. What lines are different?
If you receive retirement benefits in the form of pension or annuity payments from a qualified employer retirement plan, all or some portion of the amounts you receive may be taxable.
If you contributed after-tax dollars to your pension or annuity, your pension payments are partially taxable. You won't pay tax on the part of the payment that represents a return of the after-tax amount you paid. This amount is your investment in the contract and includes the amounts your employer contributed that were taxable to you when contributed. TurboTax will figure all of this out for you when you enter your 1099-R and answer the follow-up questions in the retirement income interview.
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