I cashed out a Life Insurance policy that I had held for about 16 years. During the time the policy was in force I did a 1035(a) exchange to a different company. The previous carrier did not transmit the cost basis to my new carrier. The 1099-R I received from the new carrier has the taxable amount blank and Taxable amount not determined checked. When I enter this info into TurboTax, the entire distribution is taxed. This can't be correct. What do I do? The followup questions only asked about pension plans and hurricane relief.
The entire amount should not be taxable since I have made nearly $35k in after-tax premium payments over the life time of the policy.
