dmertz
Level 15

Retirement tax questions

The Form 1099-R must be entered as received.  The 1 in box 7 indicates that the amount in box 2a is subject to an early-distribution penalty because you were under age 59½ at the time of the distribution.  Box 5 should show the amount of your investment in the contract and box 2a should show only taxable gains, the amount in box 1 minus the amount in box 5 (but not less than zero).