dmertz
Level 15

Retirement tax questions

"Why did the IRS break out line 2a (1040) on to a separate line?"

 

At least two reasons:  The amount on line 2a is considered to be income, albeit nontaxable income, so it needs to be accounted for on a tax return just like any other nontaxable income.  The amount on line 2a is also used as a modification to AGI for ACA purposes.