What is taxable amount on 1099-R, Line 2a for IRA funds received if the amount contributed after tax is lower than the distribution amount? Received $41K; basis $48K.

[dalinkdcx]

Cannot submit return with error message "Box 2a 1099-R should not be zero if there is no prior year excess traditional IRA contribution on Line 4 of the IRA information worksheet.

[MichaelL1]

leave box 2a blank

[dmertz · Accepted solution]

The correct amount for box 2a for any From 1099-R reporting a regular distribution from a traditional IRA is the same amount as is shown in box 1.  Box 2b Taxable amount not determined should be marked.

The taxable amount of a regular distribution from a traditional IRA when you have basis in nondeductible contributions must be determined by completing Form 8606.  TurboTax does the for you automatically when you enter all of the necessary information.  Be sure to click the Continue button on the Your 1099-R Entries page to reach the questions about your basis and your traditional IRA total year-end balance.  If you had no funds in traditional IRAs on December 31, 2016, your situation will result in TurboTax placing a $7,000 deduction on Schedule A for the unrecoverable basis.