My CSA 1099R box 2a: Taxable amount states Unknown. Anybody follow the 721 publication instructions?

[phyzx]

I have chosen the Simple method as a civil servant retiree and read where I need to compute the taxable amount. I am asking about this for some guidance in a simpler answer if that is possible or have I fallen in to a rabbit hole? In typical government instructions, if one hasnt does this it sounds too thick the first time.

Does anybody have to do this yearly? I am guessing that once I get the simple answer then I can just perform this process every year. This is my first time coming across this. The main sticking point is the 'Enter your cost in the plan at the annuity starting date'. Where is this to be found? Also there is a monthly remittance to a former spouse and a message in the CSA 1099R stating a yearly gross annuity reduction for the remittance that the spouse is responsible for. My thinking is this statement and the box 2a Unknown are connected. The sad and frustrating thing about retirement is there is no real connection between the IRS, SSA, OPM, Medicare and health care providers.

Thanks in advance for any answers or guidance.

[macuser_22 · Accepted solution]

The taxable amount in box 2a is usually the box 1 amount unless you have after-tax contributions in the retirement plan and use the simplified method. If this is NOT the first year of receiving payments, then you should use the same method that was used last year - either the box 1 amount of the simplified method, using the carry forward simplified information from last year.

If box 2a is blank or UNKNOWN then there should be amount in box 9b to use with the simplified method. If no amount in 9b then contact OPM to find the account "basis".

[phyzx · Accepted solution]

Thanks. The 9b amount matched the amount in my OPM booklet. Since this process is new to me I could not get these items in concert with correct reporting or my assumptions about this new reporting technique for me. You have supplied me a the simplest of answers. I can see the tree for the forest.

Thank you again. I can now continue on with ease!