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Question

Inherited Non-Qualified Annuity Distribution

Forum|Forum|1 year ago
March 10, 2025
1 reply
0 views

I cashed in an inherited non-qualified (NQ) annuity I received from my mother after her death. I received a 1099-R that identified the taxable portion. Although this is NQ, TurboTax (TT) seems to think it is a qualified distribution, and requires me to answer questions that do not apply (for example, the distribution is not from a 403(b) nor any other type of qualified plan).

Is this a flaw in TT or am I entering the data somehow incorrectly (I am scanning a QR code)? Any suggestions?

There is a known issue with 1099-R forms with a code of D in the distribution box (such as 7D or 4D).

Please see this TurboTax Help page and sign up to be notified of any updates.

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