jwwmgw
New Member

Why is Sect 1035 Distrib with 1099-R Box1 $33K Box 2 $0.00 and Box 7 as "6" showing as $33K as Retirement income? How to correct?

This is a Life to Life where Distribution of 33,039 was sent directly to the new insurer.  I entered the info from the 1099-R as shown to 

Box 1  Gross Distribution  $33,039           Box 2 Taxable Amount $0.00     

Box  2b Total Distribution           Box 5  $24,808  and 

Box 7 "6 - Section 1035 Exchange.  

The entire $33,039 is included in my Retirement Income

What did I do wrong and how do I fix it?