Distribution Code letter for annuity cashed in in 2024 listed as traditional IRA - It is marked 7 IRA/fee simple

[peggybollinger]

I cashed in an annuity in 2024 listed as Traditional IRA.  The 1099 R states disribution code as 7, IRA/Fee simple box checked.  However it says I must add a letter A-M and I am not sure which one to check

[dmertz]

The IRA/SEP/SIMPLE box being marked on the Form 1099-R provided by the payer indicates a distribution from an IRA.  No other code is permitted to accompany the code 7 in box 7.

"However it says I must add a letter A-M and I am not sure which one to check"

What is "it?"  Codes A and M are not permitted to be in box 7 for a distribution from an IRA.

Are you asking in regard to something needed on a state tax return?

[peggybollinger]

No it’s for a federal return.  I put in the info from the 1099R. Number 7 is 7 normal   When I hit save and continue, it brings me to two boxes, one states please use the amount given in box to a as a taxable amount, or please ignore the taxable amount given inbox to a. I will complete for 8606. I am not sure which box to hit

[dmertz]

Enter the Form 1099-R exactly as received.  On such a Form 1099-R, box 2a is required to be the same as the amount in box 1 and entered as such.  If less than the full amount of a distribution from a traditional IRA (including a traditional IRA annuity such as yours) is taxable, that's determined on Form 8606.

[peggybollinger]

Thank you so much. Really appreciate you. Happy Valentines Day