I received a 1099R from my insurance company. Do I state it was an RMD?

[charjean47]

I turned 70 1/2 this year.  Each year I get a 1099R from State Farm.  The gross distribuion (1.) about three hundred and the taxable amount (2a) is about half  of the distriution.  My contribution (5.) was around two hundred.

I never received the gross distribution.  Not sure what it was used for.  The insurance company has not called me back.  It might of paid for the premium that year.

Do I state this is a RMD withdrawal?

Do I indicate it is a full required withdrawal?

Thank you

[Coleen3 · Accepted solution]

If your distribution is from a qualified account, say yes. 

If money is non-qualified, that means it is not part of a tax-deferred account. Examples of tax deferred account are traditional or Roth individual retirement account (IRA), a simplified employee pension (SEP) or an employer sponsored defined benefit plan such as a 401(k). Taxes have already been paid on non-qualified money.

Nonqualified annuities (those held outside a retirement account) generally have no requirement to withdraw your funds at any age unless required by the annuity contract itself. Some contracts force distributions or annuitization to begin at a certain age, generally from age 85 to 100. A few contracts do not require distribution of the proceeds until death. 

Your 1099-R issuer is required to follow RMD rules and regulations, so if you received a distribution and you're at least 70 1/2 years young, you can be almost certain you received an RMD. Check with your plan administrator if you're still not sure.

Required Minimum Distribution (RMD) rules apply to all employer-sponsored retirement plans such as pensions, profit-sharing, 401(k), 403(b), and 457(b) plans, as well as Traditional IRAs and IRA-based plans such as SEPs, SARSEPs, and SIMPLE IRAs. However, RMDs are not required for Roth IRAs while the owner is still alive.

[charjean47]

Since I did not receive the three hundred gross distribution (dividends), should I choose the following answers (the ones with X)?

What Did You Do With The Money From State Farm Life Insurance Company?
__X___I moved the money to another retirement account (or returned it to the same retirement account).
______I did something else with it (cashed out, etc.
__X___I rolled over all of this money to an IRA or other retirement account (or returned it to the same
account).
______I did a combination of rolling over,  converting, or cashing out the money.

It is a non-tax qualified plan.

Thank you

[macuser_22]

Insurance distributions are not qualified retirement plans and are not eligible for rollover.

[charjean47]

Thanks.  I just learned it is a non-tax qualified plan.