dmertz
Level 15

Retirement tax questions

The code D  in the '1D' indicates that the distribution was from a nonqualified annuity.  A distribution from a nonqualified annuity is not permitted to be rolled over.  Any amount in box 2a is subject to tax and to an early-distribution penalty.  If the distribution was actually from an IRA annuity, contact the payer to obtain a corrected Form 1099-R.

Any deposit into an IRA of money distributed from a nonqualified annuity would be a new regular contribution to the IRA, not a rollover contribution.  A new contribution must be entered under Deductions & Credits -> Retirement and Investments -> Traditional and Roth IRA Contributions.