If I receive pension and have distribution code 2 in box 7 on 1099R I should not see my amount owed increase because says no additional tax but it is adding it. Why?

176

Expert Alumni

Jun 6, 2019 2:02:45 AM

Your pension reported on form 1099-R with code 2 in box 7 is taxable. Code 2 means that there is no penalty for early withdrawal, but normal income tax is due.

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If I receive pension and have distribution code 2 in box 7 on 1099R I should not see my amount owed increase because says no additional tax but it is adding it. Why?