Box 16 is left empty on 95% (ok...that's a guess) of 1099-R paper forms that are issued. But the software needs a value in box 16 for many-to-most states that have an income tax. So putting 2a (as long as 2a has a real value in it) into box 16 avoids issues with that. Generally, the software takes care of doing that as you continue in the interview past the main1099-R page, where there is one that displays the state "Distribution" amount....which is actually what the software is putting in box 16. For the software, Box 16 must be greater than 14....you can't have tax withholding (14) taken out of nothing.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
