I rolled over 2 annuities into another retirement fund. After entering 1099R forms it looks like I received both and did not rollover. What did I do wrong

[smrowland21]

I entered the box 7 distribution codes as they were written on the form.  One was D7 and the other was 6

[macuser_22 · Accepted solution]

An annuity cannot be rolled over - it can only be exchanged with a section 1035 exchange which is what the code "6" indicates.  That would be a non-taxable exchange.

The D7 indicates a normal distribution from non-qualified annuity that is taxable and not eligible to be rolled into a tax-deferred retirement account.   Any money placed into a tax-deferred retirement account, such as a IRA, that exceeds the yearly contribution limits of $5,500 ($6,500 if over age 50) but not more then your earned income would be an excess contribution subject to a 6% penalty every year until it is removed.   If you used the money to purchase another annuity then it is still taxable if the money was received by you.