The unrecovered investment in pension would represent the portion of pension distributions that would not be taxed as it is a return of non-deducted contributions to the plan. I'm not sure why you received a letter as opposed to seeing the amount being reported in box 5 (employee contributions) on a Form 1099-R for a pension distribution. Since you use the amount to reduce the tax on pension distributions, you could use it in either or 2023 and 2024 depending on when there were distributions taken from the plan.
Can you clarify if there was a distribution reported on a Form 1099-R in 2023, and if there was what value is in box 1, 2(a) and 5 so we can get a better idea of how the distribution is reflected on the Form 1099-R? Also, what distributions will be taken in 2024.
I am sorry for your loss.
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