No, you do not. Your 1099-R should state in box 2a the word "undetermined" or something similar. Then, in box 5, there will be an amount entered that represents your contribution amounts in the annuity. Typically speaking, the taxable portion of the annuity is determined by the simplified method, although the general method may sometimes be used to recover the after-tax contribution amounts. For an explanation of these methods, please click on the following link: Topic No. 411 Pensions – the General Rule and the Simplified Method ...
If you have that kind of wording in box 2a, leave the box blank in TurboTax and then make sure that the "taxable amount is undetermined" box is checked. This will allow TurboTax to generate the worksheet necessary to determine the amount of your annuity that will be taxable this year by applying the correct method.
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