My grandma got a form 1099-R. Box 1 Gross Distribution and Box 2a Taxable Amount have the same amount $25,000. Distribution code is 7D. Nothing else in other boxes. She's single, 70 years old and hasn't filed taxes for years and her only other income is $9,000 from social security. Is she going to be taxed on the $25,000? I'm reading up on distribution code D that non qualified annuities may be subject to 3.8% additional tax under IRC 1411 if income exceed certain thresholds in her case $200,000. So does this mean she doesn't have to worry about paying taxes because her income is way below the threshold? Or does she need to pay taxes because $25,000 is in Box 2a as Taxable Amount?
