- quote -

Thanks for the help.

As it turns out, I just received an unexpected statement
from the plan that includes the answer to the question --
the same one you gave, of course.

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- quote -

If it matters, 2006 was the first year receiving benefits,
and they started in mid-year.

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- quote -

Yes for 2a. No for 2b.

- quote -

Don't really know, but if they're supposed to be the same
I'll go with the most recent communication, the 1099-R form.

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MyVeryOwnSelf wrote:

- quote -

Did the payer include entries in boxes 2a and 2b? Why is
there a discrepancy between $3,500 in box 9b and the letter
which states $3,600 after-tax contributions?

-Mark Bole

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MyVeryOwnSelf wrote:

- quote -

Box 9b reflects your employee after-tax contributions that
were not recovered in any prior years. The simplified
method requires that you use the cost basis at the start of
the annuity. This would be the $3600 that was reported to
you in the letter.

--
Alan
http://taxtopics.net

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IRS Publication 575 has a worksheet to calculate the taxable
portion of qualified employee pension income. My question is
about line 2 ("cost in the plan") in the case when TP's
contributions were partly pre-tax and partly after-tax.

What goes in line 2 in the following case, and why? --

Form 1099-R for 2006 has
70 in box 5 ("Nontaxable contributions")
3,500 in box 9b ("Total Employee Contributions").

An earlier letter from the plan says:
18,000 Tax-deferred contributions
12,000 Interest on tax-deferred contributions
3,600 Taxed contributions
7,500 Interest on taxed contributions

Thanks.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >