I am trying to optimize our IRA withdrawals for 2024 (eg, not trigger Medicare surcharges).
We know all of our 2024 income, and the implications, except for one 1099R. We received a 1099R for a one-time beneficiary death payment from an aunt who died. It is a non-qualified annuity with my wife as the death beneficiary.
This is the only relevant information on the 1099 (eg, I am excluding tax withheld). I am also rounding the numbers just to make a simpler presentation:
- Box 1 Gross Distr 36,000
- Box 2a Taxable Amount 16,000
- Box 5 Annuitant Contributions 20,000
- Box 7 Distrib Codes 4 D
NO OTHER boxes have any info. It is clear that 16,000 is taxable income. My question is: What amount will contribute to AGI? 36,000 or 16,000? It seems to me it should be 16,000 as the other 20,000 is the aunt's original (or remaining) contribution.
This is ALL we know, as the executor is VERY slow to provide info or answer questions. Turbo Tax has the 1099 form withheld pending updates, so I cannot see how Ttax would handle it.
I am flying blind. Can anyone make a statement, or a highly likely guess?
Thanks for any help you can provide!
