Pro rata rule for IRA distribution

[delta_hotel]

Hello experts,

I understand the pro rata rule for IRA distributions and calculated my taxable and non-taxable portion of my IRA withdrawal.   In my 2021 Turbo tax desktop software where you enter your 1099-R I don't know how to enter the different categories of distribution (taxable and non-taxable).   I'm using 2021 Turbo Tax to estimate my 2022 taxes and approximating what my form 1099-R would look like.   This is my first IRA distribution, so I never have a 1099-R as a template. 

I entered the total distribution in box 1 and the "calculated" taxable amount in box 2a. and my federal tax owed did not change.   In fact, other than entering $0.00 in box 2a. my federal tax owed does not change.  O

Any help would be greatly appreciated.

Thanks in advance,

Dave

[VolvoGirl]

How did you calculate the amount for box 2a?  It should all be taxable unless you have a basis (made some contributions you didn't take a deduction for).   What code did you enter for box 7?  You have to know what to enter for each box on a 1099R.  There are several things on it you can't make up.  

[macuser_22 · Accepted solution]

Leave box 2a blank.  After you enter the 1099-R and continue the interview after the 1099-R summary screen then the 2nd part of the interview will ask if you had a basis (non-deductible contributions), answer yes add enter the amount of remaining basis that had not already been used, then it will ask for the previous years  year end market value of the IRA (get that from the IRA yer end statement.    TurboTax will then calculate the taxable/non-taxable amounts of the distribution on a 8606 form that becomes part of your tax return.

[delta_hotel]

You nailed it!  Thank you so much for the help.

Best regards,
Dave

[Mike9241]

why you think you need to do the calculations is unclear except if this is a foreign pension.

could you provide more info if this is not the case. 

normally 

for distributions from any one account, you get 1 1099-R for the total that is shown in box 1. the taxable amount is shown in box 2a.  sometimes it is left blank because the trustee doesn't know if you have tax basis which needs to be entered. form 8606 is used to report your basis and the non-taxable portion is calculated automatically based on 2 entries you make 

for the 8606 your prior year tax basis is entered on line 2 and the value of all your traditional (non-Roth)  IRAs, SEP's and SIMPLE's on 12/31/2022 are entered on line 6. the non taxable portion is calculated from that. 

so as of today you can't calculate the nontaxable portion be 12/31 has arrived yet.

now if it's a foreign pension then I would understand because you probably get no tax reporting form 

[dmertz]

Correction to macuser_22's post.  Assuming that this is your own IRA and not an inherited IRA, you should enter into box 2a the same amount that is in box 1.  The Form 1099-R that you will receive from the custodian will have box 2a equal to box 1.  Although TurboTax ignores the value in box 2a under these circumstances unless you enter $0 which has special meaning, you should make entries that agree with those that will be on the Form 1099-R you will receive.