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Retirement tax questions
Yeah, I wondered about that when I was entering a 401k that had some small after tax contributions.
There is a question just prior to that setup, that asks:
"For the years you received these distributions, was the total amount shown in the form the amount you paid tax on?"
If box 2a is filled in and shows the proper taxable amount, even if lower than box 1, just say YES to that, and the box 2a value will be used on your 1040 as the taxable amount, assuming there wasn't a rollover or xfer to a Roth involved...((box 5 should likely show the difference between box 1 and box 2a))
The question is probably there for folks who have box 2a empty, and the box checked that the taxable amount was undetermined.
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Yeah, that's likely to cause a bunch of mis-entries by folks by those with different box 1 and box 2a values.
I need to go to last year's software now to see how they worded the question.