My 1099-R for a direct rollover of a tax-sheltered annuity shows code 6 in box 7 and 0 in 2A as taxable amount. Is this ok?

[jvwell]

I would think box 7 should show G for a direct rollover, but do not really care if code 6 and $0 taxable will suffice

[dmertz · Accepted solution]

Code 6 is correct.  Your annuity is a nonqualified annuity and what you did was a nontaxable section 1035 exchange.  Code G is only for direct rollovers to or from qualified retirement plans; it is never used for distributions from nonqualified accounts.