Solved: 1099 R noted that the annuity fund sent was surrendered to me. I sent the same fund to a new company as a rollover in 4 days which is a qualified fund. Please advise.
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1099 R noted that the annuity fund sent was surrendered to me. I sent the same fund to a new company as a rollover in 4 days which is a qualified fund. Please advise.

I requested an annuity as a rollover from a previous company to a new one. However, it was not sent as a rollover, but the fund was sent as a surrender policy directly on my name. I cashed the check and sent the money within 4 days to the new company. The previous company sent me a 1099 R form but noted that was not a rollover, but the fund was surrendered to me. I did send the exact fund to the new company as a rollover(qualified fund). for my annuity. The new company issued me a letter as proof that the fund was sent to them. They will send me a 5498 tax form in May. Please advise how to proceed with my income tax.

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1099 R noted that the annuity fund sent was surrendered to me. I sent the same fund to a new company as a rollover in 4 days which is a qualified fund. Please advise.

I assume from your description that you received a 1099-R with a distribution code of '7' and the "total distribution" box checked.

In the 1099-R, after you enter the 1099-R information (and after a lot of other questions) you will be asked "What did you do with the money from [name]'s [pension name]?"

You will check the first bullet: "[name] moved the money to another retirement account (or returned it to the same retirement account)".

This will expose two new lines. You will check the first one: "[name] rolled over all this money".

Now your 1099-R distribution will not be taxed.

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Level 13

1099 R noted that the annuity fund sent was surrendered to me. I sent the same fund to a new company as a rollover in 4 days which is a qualified fund. Please advise.

I assume from your description that you received a 1099-R with a distribution code of '7' and the "total distribution" box checked.

In the 1099-R, after you enter the 1099-R information (and after a lot of other questions) you will be asked "What did you do with the money from [name]'s [pension name]?"

You will check the first bullet: "[name] moved the money to another retirement account (or returned it to the same retirement account)".

This will expose two new lines. You will check the first one: "[name] rolled over all this money".

Now your 1099-R distribution will not be taxed.

View solution in original post

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