I have a 1099r in which box 1 is less than box 2a. what do i do?

[splumedahl]

None of those answers relates to the fact that Box 1 Gross Distribution is LESS than Box 21 Taxable amount. I am getting an error in TTax and don't know how to handle.

[MichaelL1 · Accepted solution]

If box 2a (taxable amount) of the 1099R is larger than box 1 (gross distributions) you need to contact the issuer of the 1099R as there is an error and a corrected 1099R needs to be issued. 

[cnoyes260]

I keep seeing this response in all questions on this forum relating to the taxable amount of the 1099R being greater than the gross distribution. However, the amounts on my 1099R are CORRECT due to the fact that I took a loan out against the policy. Therefore, my taxable amount SHOULD be greater than the gross distribution and I do NOT need a revised form from the issuer. Please advise how to input this information correctly in TurboTax so that I do not keep getting the error.

[MichaelL1]

Deemed distribution. If a loan is treated as a deemed
distribution, it is reportable on Form 1099-R using the
normal taxation rules of section 72, including tax basis
rules. The distribution also may be subject to the 10%
early distribution tax under section 72(t). It is not eligible to
be rolled over to an eligible retirement plan nor is it eligible
for the 10-year tax option. On Form 1099-R, complete the
appropriate boxes, including boxes 1 and 2a, and enter
Code L in box 7.

[MichaelL1]

You can either get a corrected 1099R with the amount in Box 1

or, do an override and paper file the return and probably get a letter from IRS.