Thanks for the reply!
Yes, the amount in Box 1 (Gross distribution) is larger than the Box 2a amount (Taxable amount). Each monthly payment, the State of Texas took out $200 to $300 from her salary as a retirement contribution. This occurred from the start of her employment to the end, so that she did have a cost, to her retirement plan, which she had made. That's why the Gross distribution is greater than the taxable amount. And that's why there is an amount in Box 5 (Employee contribution). Her 1099-R has no Box 5a or 5b. Box 7 has a "7" in it. The IRA/SEP/SIMPLE box is not checked, Boxes 8 (Other), 9a (Your percentage of total distribution) and 9b (Total employee contribution) are all blank. Nothing in them.
So, i should answer the question "Yes" that asks if Box 1 and 2a are the same, even though they aren't? Strange, very strange. If I get audited, I'll be suing Turbotax for defective software. Not that I expect that since the employee contribution amount is immaterial to the Gross Distribution amount.
I am relying on your post, btw, for this part of the tax return. Not that I'll hold you accountable for any mistakes. Thanks for the help.
Retired Corp Accountant
