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Level 2
posted Jan 28, 2022 2:42:54 PM

How do you correctly report an annuitized (20 year certain) traditional IRA. Turbo tax asks how much of the distribution was toward the RMD? Options are all, some or none

The 1099s are coded like a traditional IRA. Box 7 is coded with a 7 and the IRA/SEP/Simple box is checked. So, on the outside, it looks like a traditional IRA but it is really an annuitized IRA on the inside and they have no RMD value or calculation? Thanks for your help.

0 7 927
1 Best answer
Expert Alumni
Jan 28, 2022 3:24:10 PM

Yes, say "all".

7 Replies
Expert Alumni
Jan 28, 2022 2:58:00 PM

Please see this answer from dmertz.

 

Distributions from a annuitized IRA annuity are normally considered to be all RMD, entirely the RMD required of the annuity and therefore are unable to be aggregated with RMDs of other IRAs.

Level 2
Jan 28, 2022 3:10:02 PM

Hi and thank you for responding. I do not want to aggregate them with other IRAs; however, I do need to report each annuitized IRA uniquely and properly. Turbo tax asks how much of each IRA's annual distribution went towards satisfying the RMD? I have no way of getting around this question. So, do I report all, some, or none as the answer to get past this question? I think you are implying I should answer with "all" (of the distribution) instead of some or none? Please confirm and thank you again.

Expert Alumni
Jan 28, 2022 3:24:10 PM

Yes, say "all".

Level 2
Jan 28, 2022 3:35:10 PM

Thank you so much for answering my question.

Level 15
Jan 28, 2022 3:38:20 PM

IRS says:

 

You are taxed when you start receiving payments under that annuity contract.
Tax treatment. If only deductible contributions were
made to your traditional IRA since it was opened (this includes all your traditional IRAs, if you have more than
one), the annuity payments are fully taxable.
If any of your traditional IRAs include both deductible and nondeductible contributions, the annuity payments
are taxed as explained earlier under Distributions Fully or Partly Taxable.

Level 2
Jan 28, 2022 4:02:02 PM

Fanfare,

 

You post has absolutely nothing to do with my question. I was asking about how to report RMDs on an annuitized IRA. Your response does not even mention RMD. The taxable portion was never in question because it was purchased with pre-tax money so all distributions are 100% taxable.

Level 15
Jan 28, 2022 4:45:47 PM

Okey Dokey .