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Retirement tax questions
Non-qualified accounts are not eligible for rollover. A non-qualified insurance policy or annuity can be exchanged through a process called a section 1035 exchange, reported with code 6 in box 7 of the Form 1099-R, but otherwise its a taxable distribution and an independent purchase of a new policy or annuity. TurboTax automatically treats a code 6 Form 1099-R as nontaxable because a code 6 Form 1099-R will always have a zero in box 2a as the taxable amount.
ā€ˇFebruary 6, 2021
8:48 AM