You will not enter the transaction in TurboTax. When you receive the cash value of the policy, you will then be required to pay taxes on all of the earnings within the policy. This sum of money is represented by the amount of money in excess of the total premiums you’ve paid into the policy. You are then able to use this money to fund an IRA. You will receive Form 5498 which is an information form.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
