My 1099-R has an amount in box 2a. TurboTax is asking me to complete the Simplified Method Worksheet. It wants the "Plan cost at annuity starting date." What is this?

[DoninGA]

If the Form 1099-R you received is for an annual retirement/pension, then delete the Form 1099-R and re-enter the form manually.

To enter, edit or delete a form 1099-R -

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Retirement Plans and Social Security
On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

Online editions -

On the screen Did you get a 1099-R in 2025? Click on Yes
On the screen Let's import your tax info Click on Change how I enter my form
On the screen How would you like to upload your 1099-R? Click on Type it in myself
On the screen Who gave you a 1099-R? select the type of 1099-R you received and Continue

[ThomasM125]

That is what you have contributed from after-tax dollars to the annuity at the time you started taking distributions. That is in contrast to what your employer may have contributed and what you may have contributed that was not included in your income. In other words, your "out of pocket" investment in the plan if any. It is the amount you can take tax-free since you have already paid tax on that money. It may be listed in box 9(b) of your Form 1099-R.

[SteamTrain]

@ge-marble 

Unfortunately, the question just prior to the Simplified method, in the interview may be grossly misleading for your situation...(TTX messed it up totally this year)

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)

_________________________

[ge-marble]

Thanks for your help with my 1099-R problem. As you suggested, I did have to delete the two 1099-Rs that contained a reduced value in Box 2a. By entering them and selecting "Yes" for Tax was paid on Gross Distribution, TTX no longer required me to use the Simplified Method Worksheet.