Why is there no taxable amount showing on my 1099-R from my traditional IRA?

8 This is actually a common issue with 1099-R forms. When box 2b is checked as "taxable amount not determined," it means the financial institution is leaving it up to you to determine the taxable portion based on your contribution history. For a traditional IRA, contributions are usually tax-deductible when made, which means distributions are generally fully taxable. However, if you've made any non-deductible contributions to your traditional IRA (which would have been reported on Form 8606 in prior years), then part of your distribution might not be taxable. If you've never made non-deductible contributions to your traditional IRA, then yes, you should report the entire gross distribution as taxable. The 10% early withdrawal penalty will also apply unless you qualify for an exception.

15 I had the exact same problem last year with my IRA distribution! After hours of research and frustration, I finally found taxr.ai (https://taxr.ai) which helped me figure this out. Their system analyzed my 1099-R and contribution history and determined what should actually be reported as taxable. It turns out that the financial institution isn't required to determine the taxable amount if they don't have complete records of your contribution history (especially if the account was transferred from another custodian at some point). The tool helped me understand that in my case, since I had only made deductible contributions, the entire amount was taxable despite box 2a being empty.

3 Just wanted to update everyone - I decided to try taxr.ai after seeing it mentioned here, and it was incredibly helpful! My situation was pretty complicated with multiple rollovers and some non-deductible contributions over the years. The system analyzed my documents and helped me figure out exactly how much of my distribution was actually taxable. It even explained why the financial institution left box 2a blank (they truly didn't have enough information to make the determination). I was able to correctly fill out Form 8606 and properly report the taxable portion of my distribution. Definitely saved me from either overpaying taxes or potentially getting an audit notice for underreporting. Worth checking out if you're dealing with this situation!

22 If you're having trouble getting clear answers from your financial institution about your 1099-R, you might want to try calling the IRS directly. I know, I know - getting through to them seems impossible! That's why I started using Claimyr (https://claimyr.com) after being on hold for hours multiple times. They somehow get you connected to an IRS agent quickly (you can see how it works here: https://youtu.be/_kiP6q8DX5c). I was able to ask specifically about my blank 2a box situation and the agent confirmed that I needed to calculate the taxable portion myself based on my contribution history. They even walked me through how to determine if I had any non-deductible contributions.

19 I have to eat my words about Claimyr. After posting my skeptical comment, I decided to try it myself since I had questions about my 1099-R situation that I couldn't resolve online. I was honestly shocked when I got a call back telling me an IRS agent was on the line. The agent confirmed that with a traditional IRA distribution where box 2a is blank and 2b is checked, I needed to determine the taxable amount based on whether I had made non-deductible contributions in the past. Since I hadn't, the entire distribution was taxable plus the 10% penalty since I'm under 59½. Saved me hours of hold time and potentially a lot of tax headache. Definitely not a scam like I initially thought.

11 Another thing to watch out for - if you're filing with tax software, you need to make sure it's correctly handling the 1099-R with blank box 2a. I found that when I entered my 1099-R exactly as is (with blank 2a), TurboTax wasn't calculating any tax on it. I had to manually override and enter the gross distribution amount as the taxable amount. The software should have prompted me about this, but it didn't. Double-check your return to make sure it's correctly calculating tax on your distribution!

5 Just called my financial institution about this exact issue. They said they leave box 2a blank when they don't have complete records of all your contributions, especially if the account was transferred from another institution at some point in the past. They confirmed that for a traditional IRA, I should generally report the full amount as taxable unless I had made non-deductible contributions (which would have been reported on Form 8606 when made). The 10% early withdrawal penalty would also apply since the distribution code is 1.

This is such a helpful thread! I'm dealing with the exact same situation and was getting really frustrated trying to figure out what to do. My 1099-R has box 2a blank and 2b checked, and I was worried I was missing something important. Based on what everyone has shared here, it sounds like since I only made deductible contributions to my traditional IRA over the years, I should report the entire gross distribution as taxable income. I'll also need to pay the 10% early withdrawal penalty since I'm under 59½ and don't qualify for any exceptions. I'm using FreeTaxUSA and noticed the same issue others mentioned - the software didn't automatically flag this or calculate any tax when I entered the 1099-R as-is. I'll need to go back and manually override the taxable amount to match the gross distribution. Thanks for the heads up about that! One question though - should I be concerned about any potential audit issues if I override what's on the form? I want to make sure I'm handling this correctly from a compliance standpoint.

I'm a tax preparer and see this situation frequently during tax season. When box 2a is blank and box 2b is checked on a 1099-R, it's the IRS's way of saying "we're leaving this up to you to figure out." For traditional IRAs, here's the key question: Have you ever made non-deductible contributions? If the answer is no (meaning all your contributions were tax-deductible when you made them), then yes, the entire gross distribution amount is taxable. A few important points to remember: - You'll also owe the 10% early withdrawal penalty since you have distribution code 1 - Keep records showing your contribution history in case of questions later - Most tax software requires manual override in this situation - it won't calculate correctly automatically - This is completely normal and legitimate - you're not doing anything wrong by overriding the blank box If you're unsure about your contribution history, check your old tax returns for Form 8606 filings, which would indicate non-deductible contributions were made.