I received a 1099-R for the dividends from my life insurance. Box 7 is 7. It is a non-qualified plan. Would I use: K2 - Non-qualified deferred compensation plan OR...
K3 - Life insurance or endowment OR...
Another distribution type?
If it is PA taxable, Turbotax asks for the (cost) basis of the policy. The background is that my grandparents and then my father paid all of the premiums on the life insurance policy for me. I now receive a 1099-INT and 1099-R each year from this "paid up" policy. I have never withdrawn any of the money, letting the earnings accumulate. I do know the total dollar amount of premiums paid by my family. Is that the cost basis? Or, since I personally did not pay any premiums, is the cost basis zero?
