Of course you have to pay the tax. The box 1 and 2a amount is fully taxable. As I said, the box 2a (taxable amount) should be on the 1040 form line 15b. If it is not, then you entered the 1099-R incorrectly and should delete it and re-enter.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
