dmertz
Level 15

Retirement tax questions

When half of your annuity was transferred to your ex-spouse under a QDRO, that was accompanied by half of your after-tax investment in the plan (Plan Cost in TurboTax).  Do your entries into the Simplified Method reflect that?

 

If the Form 1099-R shows an amount in box 2a and box 2b Taxable amount not determined is not marked, the IRS is going to go by the box 2a figure and you should not be using the Simplified Method worksheet unless you know the box 2a amount to be wrong.  IF you made no after-tax investment in the annuity, the entire amount is taxable and you should not be using the Simplified Method to calculate the taxable amount.