The code in box 7 indicates already that is was put into a new account, you do not have to do anything else.
Code 6 is a "Section 1035 tax-free exchange." Section 1035 is a financial transaction in which a life insurance or annuity policy is replaced for a new one without any taxable event. It means replacing one annuity contract for another annuity contract with identical annuitants.
Please be aware that the whole distribution will show as income in TurboTax on the summary screen which shows gross income, not taxable income. To verify that the entry is correct please look at form 1040 line 4d (taxable amount), it should be $0
To preview Form 1040:
- Click on "Tax Tools" in the left menu
- Click "Tools"
- Click "View Tax Summary" in the Tool Center window
- Click on "Preview my 1040" on the left
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