The behavior of TurboTax depends on whether or not the IRA/SEP/SIMPLE box is marked on the Form 1099-R. If annuity is an IRA annuity, the IRA/SEP/SIMPLE box should be marked on the Form 1099-R provided by the payer and you need to edit this 1099-R in TurboTax to correct your marking of the IRA/SEP/SIMPLE box to agree with the marking on the Form 1099-R provided by the payer.
