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Harry (71), a single taxpayer, began receiving a pension of $3,500 per month for life on May 1, 2009. He has after-tax contributions in the plan. His 2022 Form 1099-R is shown below. Box 2a is blank. Which of the following statements is CORRECT?

1 Answer

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The correct statement would be: c. None of Harry's distribution is taxable.

How to get the correct statement

Since the taxable amount isn't explicitly mentioned, and Harry has after-tax contributions, it's feasible that a portion or the entirety of his distribution may not be taxable.

The taxable portion typically depends on various factors such as the nature of the contributions, whether they were pre-tax or after-tax, the terms of the pension plan, and Harry's total contributions versus the distribution.

Question

Harry (71), a single taxpayer, began receiving a pension of $3,500 per month for life on May 1, 2009. He has after-tax contributions in the plan. His 2022 Form 1099-R is shown below. Box 2a is blank. Which of the following statements is CORRECT?

a. $42,000 is taxable.

b. Harry is subject to a 10% additional tax.

c. None of Harry's distribution is taxable.

d. The taxable distribution is figured using the Simplified Method Worksheet.

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