Retirement tax questions

Leave box 2a blank. Do not enter "0". 

Regardless of whether or not your 1099-R has the check box, you should check it on the TT screen since that tells TT that you left box 2a blank on purpose. 

Based on your answers to all of the program's questions TT will compute the "box 2a" taxable amount and transfer it to the 1040.  

If you see a 0 (zero) in Box 2a of your 1099-R paper form, the entire distribution amount in Box 1 is nontaxable.

However, if Box 2a is blank (empty) on your 1099-R form, the taxable portion of your distribution needs to be calculated:

• If the distribution is from a Traditional IRA, we'll ask you some questions regarding your non-deductible contributions and then calculate the taxable amount based on your information.
• If the distribution is from a pension, we’ll consider the entire distribution taxable unless you can calculate the taxable amount and enter it in Box 2a. Don't enter an amount unless you know the taxable portion of your distribution.

Click here for help entering your 1099-R . 

You can also search for 1099-R in your TurboTax program and select the Jump to link in the search results to get to the 1099-R section of your return.

Per OPM's website this is how they explain the "unknown" in Box 2a 0f your Form 1099-R:

If Box 2a Taxable Amount on your 1099R is marked “Unknown,” OPM did not calculate the tax-free portion of your annuity.

Common reasons OPM would not calculate the tax-free portion of your annuity include:

• Your case is a disability retirement;
• You retired prior to November 19, 1996;
• You have voluntary contributions;
• An apportionment was paid to your former spouse(s);
• Your case has not been finalized and you are in interim pay status;
• You have survivor benefits payable and/or your case is an Office of Workers Compensation case;
• You have alternative annuity elections.

For further information, please contact the Internal Revenue Service toll free at 1-800-829-1040 to speak with an agent. OPM cannot provide tax guidance.