How should I enter a 1099-R for a non-qualified (non -retirement) annuity?

[macuser_22]

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@Radar67 wrote:

This March 2022 and TurboTax isn't just still asking about the RMD for non-qualified annuities but REQUIRES a non-zero answer in box 9a even if the original form has zero. Forcing me to put a value here has future consequences written all over it.  PLEASE  FIX!

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Zero is not allowed. The box must be blank.

(Box 9a is only used if the box 1 amount was split between 2 or more payees and tells you what your share is. A "0" (zero) would indicate that the 1099-R is reporting your share of nothing, which would be nonsense.)

Some payers insist on putting zero in the box to indicate that it is not used, when they should leave it blank according to the 1099-R form rules. TurboTax follows the rules and complains if it is zero.

[Sunny5634]

If you have a non qualified annuity and withdrew the full amount after 5 years, TurboTax shows the full amount on your income. This is terrible. Now I will probably have to get my taxes done by an accountant. I am so disappointed. I cannot seem to get any help. 

[kjewald14]

The 2024 TurboTax Premier still has the same software error - and does not have any entry to indicate a non-qualified annuity (witch has no RMD).  Just spent several hours trying to get through this part of TurboTax that has no clear explanation, and requires a RMD value to be entered..  Finally had to select Yes - all the distribution is an RMD, so I could then enter $0.00 where TurboTax requires an entry for the RMD.  This is very confusing for users.  A simple check box in TurboTax that indicates a Non-Qualified fund would alleviate all this confusion and extra time users need to sort this all out.  This apparently has been a TurboTax issue for many years. I am totally surprised, and disappointed TurboTax has done nothing to address this issue with their product that can cause user to enter incorrect information for their taxes.   Makes me wonder what other errors are lurking in TurboTax software. Too TurboTax - PLEASE fix this !!!!!!

[ConnieDow]

So, I am doing taxes for 2024.  The software has not been updated!

[Aturnes1]

Trying to enter a non qualified annuity 1099-R. The software is asking for a RMD.

There is no RRD.

please update software as in the past it asked if this was a non qualified account.

please advise

[MarilynG1]

Yes, all employer sponsored retirement plan distributions are subject to RMD if you're over 72.5 years old.

Here's IRS Requirements for RMD's.

If you don't know what your RMD is, you can assume your Plan Administrator has included it in your Distribution.  You can choose 'all or part of this distribution is RMD' and then enter an amount that is less than or equal to your distribution amount.

Here's more info on What is RMD?

@ConnieDow 

[Cristina 1]

Marilyn - They are referring to a non qualified annuity.