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How should I enter a 1099-R for a non-qualified (non -retirement) annuity?

Forum|Forum|6 years ago
June 6, 2019
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Turbotax is asking for the RMD amount, yet this is not a retirement account.

TurboTax Premier Windows

Best answer by macuser_22

TurboTax asks the RMD question for any 1099-R if over age 70 1/2.

Virtually all pension plans, defined benefit plans, and annuities in existence today fall under section 401 of the tax code.

Required minimum distributions for defined benefit plans and annuity contracts all require RMD's after age 70 1/2. If you receive periodic (monthly) payments from any pension plan you can be assured that the custodian of the plan is meeting the requirements so you can safely answer "yes" to the question.

The rules that the plan administrator must use to calculate the RMD as required by §401(a)(9) are defined in § 1.401(a)(9)-6) of the Internal Revenue Code (IRC).

The answer to the question does not go on your tax return, it is simply to make sure you do not owe any penalty for not taking the RMD or use it for an ineligible rollover.

The question is just to be sure that the requirement was met.

https://ttlc.intuit.com/replies/3302117

macuser_22Answer

Employee

TurboTax asks the RMD question for any 1099-R if over age 70 1/2.

Virtually all pension plans, defined benefit plans, and annuities in existence today fall under section 401 of the tax code.

Required minimum distributions for defined benefit plans and annuity contracts all require RMD's after age 70 1/2. If you receive periodic (monthly) payments from any pension plan you can be assured that the custodian of the plan is meeting the requirements so you can safely answer "yes" to the question.

The rules that the plan administrator must use to calculate the RMD as required by §401(a)(9) are defined in § 1.401(a)(9)-6) of the Internal Revenue Code (IRC).

The answer to the question does not go on your tax return, it is simply to make sure you do not owe any penalty for not taking the RMD or use it for an ineligible rollover.

The question is just to be sure that the requirement was met.

https://ttlc.intuit.com/replies/3302117

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

A

Advisor

Sorry

That is incorrect

A non qualified annuity doesn't have a RMD.

ONLY QUALIFIED annuities have RMD.

Turbo Tax needs to update their software. It is very misleading. The software needs to handle Qualified vs Non Qualified separately.

In this business 40 years.

Critter

Employee

Do tax-deferred annuities have required withdrawals at a certain age? Annuities are subject to the same RMD requirements if they are held inside an IRA. Nonqualified annuities (those held outside a retirement account) generally have no requirement to withdraw your funds at any age unless required by the annuity contract itself. Some contracts force distributions or annuitization to begin at a certain age, generally from age 85 to 100. A few contracts do not require distribution of the proceeds until death.

A

adegoo

I have a similar problem. I am 56 and inherited an annuity (NOT a retirement account) from my 100-year-old grandmother. This was not an IRA or other retirement account (they were farmers, so never had "retirement plans" as such). I received a 1099-R for the annuity. Do I call this “Private Distribution”, or “none of the above”? Will I pay higher taxes because I am continuing to receive these non-qualified annuity payments? (TT asked if I rolled them over to another retirement account or used them for other purchases — a red flag in my book).

macuser_22

Employee

@adegoo wrote:

I have a similar problem. I am 56 and inherited an annuity (NOT a retirement account) from my 100-year-old grandmother. This was not an IRA or other retirement account (they were farmers, so never had "retirement plans" as such). I received a 1099-R for the annuity. Do I call this “Private Distribution”, or “none of the above”? Will I pay higher taxes because I am continuing to receive these non-qualified annuity payments? (TT asked if I rolled them over to another retirement account or used them for other purchases — a red flag in my book).

Unless box 2a is a lower amount than box 1 then it is probably all taxable.

What code is in box 7?

An inherited annuity is not eligible to be rolled over - you answer that you did something else with the money.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**