1099-R Pension Income Box1 & 2a not the same

[renneberg]

I have a 1099-R for a defined benefit Pension.  It has a lower value in the 1099-R Box 2a ("Taxable amount") than is in Box 1 ("Gross distribution").  It is lower by the amount in Box 5 (Employee contrib/desig Roth contributing or insurance premiums").  This is only ~3% of the Gross amt.  When I get to checking for errors, TT asks for the "Annuity starting date" (which I don't remember, but guessed it was when I turned 65) and the "Plan cost at annuity starting date" (which I don't remember ever getting and don't have - It is not on the 1099-R I received).  TT will not let me leave the "Plan Cost..." box empty.  What do I do?

[SteamTrain · Accepted solution]

@renneberg 

Unfortunately, the question in the interview is misleading for your situation...

If your box 2a has a non-zero number in it..(not blank, nor marked as undetermined), and that number is somewhat lower than the box 1 number, due to an after-tax contribution amount that is noted in box 5...then edit that retirement form again, and when you get to the following page (below), answer it as-if the displayed edits were present  (i.e. you needed to answer YES).  

Answering YES will use the box 2a $$ amount on your for 1040.  Checking lines 5a and 5b on your form 1040, before and after entering that 1099-R, and the 5b amount should be lower than line 5a. 

 (But if you answered No, and already entered some $$ in the "General" or "Simplified" calculation area ,you might need to delete your 1099-R first and re-enter it from scratch...not sure of that though)

__________________________

[renneberg]

Thanks!  That fixed my problem, but I had to delete the entire 1099-R, then reenter it again.  And Yes, I didn't realize that the Taxable amt on 2a satisfied this question as a "yes".

[SteamTrain]

@renneberg 

Thanks!  I was wondering if you might have to delete the entire form if you'd already entered some info for Simplified or General calculations after the NO answer.