1099-R 2a and 2b

[LB641]

1099-R Box 1Gross Distribution is entered, and it is the same value as is in 2a, taxable amount.

Box 2a (TAXABLE AMOUNT) has a figure/amount entered as the taxable amount. However -

We see box 2b is checked, which contradicts 2a, by saying (TAXABLE AMOUNT NOT DETERMINED).

Just wondering if this is normal, and can both be true/correct at the same time?

2a (taxable amount) and yet 2b is checked, taxable amount not determined. With an entry in box 4, taxes withheld. Box 4, has an entry for Federal Tax Withheld.

Box 7 is "7". With IRA/SEP/SIMPLE being checked.

How does Turbo Tax (Desktop Deluxe) handle this. Just as every other 1099-R, with box 2b not checked?

Thanks

[dmertz · Accepted solution]

Your Form 1099-R is prepared correctly in accordance with the IRS instructions for reporting a regular distribution from a traditional IRA.  For such a distribution, box 2a is required to show the same amount as box 1 and have box 2b Taxable amount not determined marked.  The payer is required to mark box 2b Taxable amount not determined because the taxable amount of such a distribution is not determined until the recipient prepares their tax return.

For such a distribution, TurboTax properly treats the entire amount as taxable unless you have told TurboTax that you have basis in nondeductible traditional IRA contributions, in which case TurboTax properly prepares Form 8606 to calculate the taxable and nontaxable portions of the distribution.

[Bsch4477]

That is common. Enter the form exactly as you see it.