I'm wondering exactly how to handle this 1099-R which is an annuity distribution that has been rolled over. The taxable amount is $0. It is flagged "total distribution". Distribution code "6" appears in Box 7. There is an amount in box 8 employee contributions which is less than box 1. I understand it is not taxable but it is asking for a distribution code type and separately under "gains and losses" it appears again, asking for a cost basis.
Is the distribution code type "I 13" I'm eligible - plan is eligible?
In the prompt "distributions from life insurance, annuities..." do I leave the default value from box 1 or change it to $0?
Under gains, do I just flag it as This sale is Not taxable in PA?
Finally, What about the cost basis field?
