Recoverable OPM Federal Pension Contributions Not Being Recovered Yet from 2016 Retirement - Help Please!

Forum|Forum|3 months ago
April 3, 2026
1 reply
154 views

Hello,

My husband retired from the Gov in 2016 and has employee contributions in Box 9b of his 1099-R. The issue is that since he retired, I’ve not done anything to “recover” that dollar amount on our taxes because I didn’t know any better!

Every year I’ve input all dollar amounts from all boxes on his 1099-R and under "Annuity Information" I've answered Yes to the question, "For the years you received these distributions, was the total amount shown in the form the amount you paid tax on?" It doesn't specify whether they are talking about Box 1 or Box 2a.

Total amount taxable

Yes - is the box I check

Can I check NO and then use the Simplified Method to get moving on this to start recovering some of his contributions? Or have I already been getting recovery of them because I said Yes that I was using Box 2a as his taxable amount? I'm very confused on this.

Box 1 minus Box 2a equals the yearly non-taxable portion of his contributions. Divide that by 12 months, and it does come out to his “allowed” monthly non-taxable amount from his OPM booklet.

Can I just start recovering his contributions in 2025 without any tax consequences? As long as my mistake in not having the Simplified General Rule worksheet filled out in TT doesn’t negatively affect the IRS and what they should have received from us, we’re ok with not amending the last couple returns (he only gets $12.14/mo that is non-taxable).

Thank you for any help you can provide!

MaryK4

Level 15

If you entered the 1099s exactly, TurboTax would calculated the correct amounts even if you answered the questions incorrectly (the interview is updated and changed every year so it is best to check if you are not sure because of course you do not want to pay too much in tax).

If your Box 2a (Taxable Amount) is already smaller than Box 1 (Gross Distribution), OPM has done the calculation for you. By entering the amount from Box 2a as the taxable amount in TurboTax and selecting "Yes" to "Is this the amount you paid tax on?", you have been paying tax only on the smaller, correct amount.

You can continue exactly as you have been (entering Box 2a and clicking "Yes"), but if you want the Simplified Method Worksheet to appear in your tax records for peace of mind, follow these steps:

Enter the 1099-R exactly as it appears.
When asked if the taxable amount is correct, you can click No. TurboTax will then guide you through the Simplified Method interview. You will enter

The Plan Cost (the total contributions from Box 9b).
The Annuity Start Date (his 2016 retirement date).
Prior Year Recovered Cost- You would add up $145.68 for every year from 2016 through 2024

TurboTax should have the same taxable amount OPM (Box 2a) did.

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