topic 1099-R 2a taxable amount equal to total distribution for after tax funded IRA forcing Trubotax to calculate tax when it should be zero? in Retirement tax questions

1099-R 2a taxable amount equal to total distribution for after tax funded IRA forcing Trubotax to calculate tax when it should be zero?

fgsalama — Mon, 09 Mar 2026 05:36:33 GMT

I am 78 years old and I had an IRA account that was funded with my own after tax cash and all income was not reinvested back into the account. closed the account and received 1099-R showing the entire amount as taxable. box 1, 2a showing the same amount, 2b box checked, box 7 code is 7 and IRA SEP box checked.

how to resolve in Turbotax or otherwise?

Re: 1099-R 2a taxable amount equal to total distribution for after tax funded IRA forcing Trubota...

DanaB27 — Sat, 19 Feb 2022 14:22:28 GMT

If you had after-tax contributions in the traditional IRA then you should have Form 8606 from prior years that will show the basis in this account.

You will enter your basis during the interview (steps 10 and 11) in the retirement section and TurboTax will calculate the taxable amount. Generally, earnings will stay in an IRA account, and then these will be taxable.

Click "Federal Taxes" on the top and select "Wages & Income"
Click "I'll choose what to work on"
Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)"
Answer "Yes" to the question "Did You Have Any of These Types of Income?"
Click "I'll Type it Myself"
Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
Click "Continue" and enter the information from your 1099-R
Continue through the questions and add other 1099-R if applicable
After entering all 1099-R click "continue" on the "Your 1099-R Entries" screen
Answer "yes" to "Any nondeductible Contribution to your IRA?"
Answer the questions about the basis and value

Re: 1099-R 2a taxable amount equal to total distribution for after tax funded IRA forcing Trubota...

fgsalama — Tue, 22 Feb 2022 12:44:26 GMT

Thanks for the feedback - I need to get form 8606 and history of account to back up corrections.