Horace received a distribution from his traditional IRA. Form 1099-R, box 1 (Gross distribution) was $10,000 and box 2a (Taxable amount) was blank. Box 2b (Taxable amount not determined) had an "x" and the IRA, SEP SIMPLE box also had an "x". For the past two years, Horace made deductible contributions totaling $9,000 and had earnings of $1,000. He has no Form 8606 because he never made any nondeductible contributions to the traditional IRA Based on the information given, what amount of income will be reported on line 4b of Form 10402?

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Heres how to determine the amount of income reported on line 4b of Form 1040 Identify the taxable po... View the full answer