How do i compute the taxable amount of gross distribution from a government pension, partly funded by employee contributions?

[oatleyr]

How do i provide information for box 2a of Form 1099R statement of annuity paid

[tagteam]

Please check back later. I will page @dmertz.

[dmertz · Accepted solution]

If the plan knows the amount of after-tax employee contributions to the plan, the plan should show the correct taxable amount in box 2a.  If the Form 1099-R does not show the taxable amount in box 2a and has box 2b Taxable amount not determined marked, you would need to use the Simplified Method to calculate that taxable amount.  When entering the Form 1099-R into TurboTax and indicating that periodic ("regular") payments were received, TurboTax will offer the opportunity to figure out how much of the distribution is taxable using the Simplified Method.  In doing so, "Plan cost" is the amount of the employee's after-tax contributions to the plan.  Once he necessary information is entered, TurboTax will use the calculated amount as the taxable amount and will carry the Simplified Method details forward when you transfer in this year's tax file to begin next year's tax return with TurboTax.

[VolvoGirl]

Did you get a 1099R form from the plan?  It wasn’t exactly posted above but if box 2a is empty then leave it BLANK (not zero). Then after you enter the 1099R keep going and answer the follow up questions.