Question

10 Year Tax Averaging Method on Non Qualified Annuity

Forum|Forum|4 years ago
February 8, 2022
2 replies
0 views

As beneficiary of a non-qualified annuity, I received a 1099R with code 4D checked in box 7. The deceased was born before 1936 but I don't think I qualify for the special 10 year averaging process as this is not from a qualified plan. Can you confirm?

TurboTax Deluxe Online

fanfare

Employee

When you get a 1099-R with taxable amount determined,

you pay tax on the taxable amount shown.

D

dmertz

Employee

You can't use 10-year tax averaging on a nonqualified distribution such as the one that you received (the code D indicates nonqualified). 10-year tax averaging is potentially permissible only on a lump-sum distribution from a qualified retirement plan.