DavidD66
Expert Alumni

Retirement tax questions

An annuity can be qualified (inside a retirement account) or a non-qualified annuity that is not in a retirement account.  You can move money from one non-qualified annuity to another non-qualified annuity in a 1035 Exchange that is not a taxable event.  If you do no do it properly, it will be a taxable event.  You can also liquidate an annuity within a qualified account and put the money in another annuity within the same qualified account, and that is not a taxable event, as the funds weren't withdrawn from the qualified account.  If you liquidate an annuity inside a qualified account, withdraw the funds, and roll those funds over to another qualified account (whether you reinvest in another annuity or not) within 60 days, it is a tax free rollover.  You would receive  a 1099-R for the distribution.  

 

After you enter(ed) the 1099-R, there is a page that asks "What Did You Do With The Money From [Retirement Plan]"? See Screen Shot below.

Be sure you indicate first that you "...moved the money to another retirement account (or returned it to the same retirement account)."  and the you "rolled over all of this money to another IRA or other retirement account (or returned it to the same account)."

 

What Did You Do With The Money?

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