From IRS Publication 721:
3-Year Rule
If your annuity starting date was before July 2, 1986, you probably had to report your annuity using the 3-Year Rule. Under this rule, you excluded all the annuity payments from income until you fully recovered your cost.
After your cost was recovered, all payments became fully taxable. You can't use another rule to again exclude amounts from income.
The 3-Year Rule was repealed for retirees whose annuity starting date is after July 1, 1986.
With this in mind and annuity start date in 1984, the full amount is taxable in 2023. There was no 3-Year option in TurboTax so I entered the full amount in Box 2a on the CSA-10990R. On the screen labeled Describe to Taxable Amount, I answered
Yes, the taxable annuity amount was used as the taxable amount.
No further questions about the CSA-1099-R were asked and the full amount appeared on Form 1040, Line 5b as expected.
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