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wagsdebi
New Member

Can you help with how to report an inherited 5-year annuity distribution not as income?

The distribution check was rolled over an split between an IRA and 
Roth IRA with my brokerage firm and not cash/income to me. How do I report this in Turbo Tax as not part of my income and reduce what I owe?  

6 Replies
dmertz
Level 15

Can you help with how to report an inherited 5-year annuity distribution not as income?

What is the code (or codes) in box 7 of the Form 1099-R provided by the payer?
Is the IRA/SEP/SIMPLE box marked?
Did you inherit this from your spouse?
wagsdebi
New Member

Can you help with how to report an inherited 5-year annuity distribution not as income?

Thanks for responding. No code in Box 7 of payer’s 1099-R. Inherited from my parent.
dmertz
Level 15

Can you help with how to report an inherited 5-year annuity distribution not as income?

If you received a form identified as a Form 1099-R, there must always be a code in box 7.
SweetieJean
Level 15

Can you help with how to report an inherited 5-year annuity distribution not as income?

But was it a qualified annuity?  It may not have been.  A "5 year annuity" suggests that it is not.
dmertz
Level 15

Can you help with how to report an inherited 5-year annuity distribution not as income?

That's what I'm suspecting.  If so the distribution from the annuity is taxable and the deposits of money into the traditional and Roth IRAs were entirely independent regular traditional and Roth IRA contributions, not rollovers.  That's certainly the case if the distribution was anything other than a distribution from a qualified retirement plan reported with codes 4 and G in box 7 of a Form 1099-R.

Since the only possible way that this could have been a rollover is if it was a direct rollover from an inherited traditional account in a qualified retirement plan to inherited traditional and Roth IRAs, my questions are intended to determine if this might have been what took place.
SweetieJean
Level 15

Can you help with how to report an inherited 5-year annuity distribution not as income?

Form 1099-R  Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance  Contracts, etc.: 

A single Form 1099-R rolled into multiple types of retirement plans (IRA, Roth IRA, other qualified retirement plan, etc.) is not supported. In this situation you must determine the amount rolled into each type of plan. Then treat each part of the rollover as a separate distribution and enter on multiple 1099-R worksheets. 

https://ttlc.intuit.com/questions/1901702-are-there-any-personal-individual-tax-situations-or-calcul...

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