JulieS
Expert Alumni

Retirement tax questions

Yes, it's very common for the gross pension, box 1 Form 1099-R, to be more than the taxable amount in box 2a. 

 

Some common reasons this occurs:

 

  • A portion of the benefit is used to pay for health insurance premiums. If this is the case, you will see the nontaxable amount in box 5. 
  • Box 5 may also contain post-tax contributions or Roth contributions, which aren't taxable when they come out of the account. 
  • You may have a roll-over, or conversion of part or all of a distribution, which is nontaxable. 
  • If the distribution is a nonqualified annuity, only the earnings are taxed, not the original amount contributed to the annuity. 

 

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