Thanks for clarifying.
After adding my 1099-R, only the gain seems to be added as income. The principal is somehow flagged as tax free.
For context, the contribution was Traditional 401k. But on my form, line 2a (taxable amount) shows the gain only. There is also a footnote that says:
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Box 2a may not be your actual taxable amount since after-tax contributions and outside accounts can have an impact in determining the taxable portion of your distribution. Please speak to your tax advisor for assistance in determining if part or all of your distribution is taxable.
