ColeenD3
Expert Alumni

Retirement tax questions

No, it is not. The amount in Box 2a is the overriding factor in the form. The Code 4D indicates "death" and "Annuity payments from nonqualified annuities and distributions from life insurance contracts that may be subject to tax under section 1411".

 

A non-qualified annuity is funded using after-tax dollars. (Box 5). The contributions made to a non-qualified annuity aren’t taxable, but any growth or earnings on your initial investment are tax deferred. In other words, you have to pay ordinary income tax on the earnings part of your distributions. 

 

Annuity