- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
I would be careful with doing that. The IRS receives the same form you do and if it is reported differently, it could trigger a response from the IRS. You may want to double check your insurance policy and any riders you have that address an Accelerated Death Benefit. They are not always tax free. The disbursement code the insurance company used is a 3, which if for disability. There are different and specific requirements for an Accelerated Death Benefit and I would expect if you qualified for a non-taxable distribution your insurance company would have issued the 1099R marked as non-taxable.
Be sure if you enter something different than what is specifically listed on your 1099R that you have the documents to back up the fact that it is non-taxable.
**Mark the post that answers your question by clicking on "Mark as Best Answer"