pk
Level 15
Level 15

Retirement tax questions

@vmorishetty , Namaste ji

You should be reporting this  distribution on a form 1099-R  ( pension benefits ).  Box 1 and Box 2a should show the same -- total amount of distribution  i.e. all is taxable.  Box 7 code  should be 7  ( normal distribution ). 

 

If you want to be more of a challenger , you can   try with  Box 2a blank, and check Box 2b and Box 2c.  This will lead TurboTax to ask questions and allow you to provide information on your  total contribution to the plan  (  assuming that this amount was  after tax monies that you put into the account ).  Thus the  taxable amount would be your employer's contribution and  any growth  of  contributions.  However, you then have the burden of proving   that your contribution total was  with after tax  income.  This should be more tax beneficial  but obviously more challenging to prove.

 

Is there more I can do for you ?