I received an early distribution 1099-R

[Grams10]

I received a check this year from an Annuity that was up, and to get the best earnings I put it into a CD.

The 1099-R shows the distribution of $113k of which $13k was entered as taxable in box 2a;  the Distribution code is 1D.

Turbotax is showing an additional 10% tax due on that $13k I assume because I am only 54 yrs old? Can I roll that amount back into an IRA

[SweetieJean]

You only have 60 days to roll it to an IRA, so unless you received it in late December, it is too late to do so now.

[Grams10]

Thank you

[dmertz]

The only way to have avoided tax on the $13k of earnings distributed from this nonqualified annuity would have been to do a section 1035 exchange into another nonqualified annuity or life insurance policy instead of taking a regular distribution.  Nothing in a nonqualified annuity is eligible for rollover into an IRA or any other type of qualified retirement account.

Even though it's not listed in the instructions for line 2 of Form 5329, IRS Pub 575 lists distributions from a deferred annuity contribution under a qualified personal injury settlement for which you can claim an Other reason exception on the taxable amount of the distribution.

https://www.irs.gov/publications/p575#en_US_2019_publink1000226962

[dmertz]

I've corrected my reply to indicate that distributions from a nonqualified deferred annuity under a qualified personal injury settlement are not subject to the early distribution penalty.