Question

1099-R distribution code 6

Forum|Forum|6 years ago
March 7, 2020
1 reply
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I have entered a rollover into Turbo tax with a distribution code of 6 and the rollover is being added to annual income even though nothing is entered on line 2.

ColeenD3

Make sure that is actually on the taxable Line 4d, not just on 4c.

What is a 1035 Tax Free Exchange?

A 1035 tax free exchange is the I.R.S. tax code that allows for the rollover of a non-qualified annuity (or transfer of a life insurance policy) to a new annuity or life policy of equal or greater value. Capital gains and/or income taxes will not be realized from this type of transfer when completed properly.

There are only three examples of a 1035 exchange:

Annuity to Annuity
Life Insurance to Life Insurance
Life Insurance Cash Value to Annuity

The I.R.S. does not allow for a 1035 exchange from a tax deferred annuity to any type of life insurance policy. If you want to buy a life insurance policy with the proceeds from an existing annuity, you will first have to annuitize (or surrender) your annuity and pay taxes on any deferred gains.

G

GERNZEEAuthor

Can I change the line that Turbo Tax puts this 6 distribution on

DoninGA

Employee

@GERNZEE wrote:

Can I change the line that Turbo Tax puts this 6 distribution on

The distribution amount from the 1099-R with a code of 6 in box 7 should be entered on the Form 1040 Line 4c and if there was not amount entered in the box 2a of the 1099-R, then Line 4d will be blank (empty)