If the annuity is paid out because the annuity has reached its annuitization date, do you still pay early withdrawal penalty?

Form 1099 R has box 7 distribution coded 1D, but it was not an early distribution. Money was taken out because annuity contract came to an end.

posted

Annuitization is the process of converting an annuity investment into a series of periodic income payments. Annuities may be annuitized for a specific period or for the life of the annuitant.

Did you take out all of the money in one lump sum?

IRS Instructions for Forms 1099-R and 5498 (page 15)

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

If the annuity is paid out because the annuity has reached its annuitization date, do you still pay early withdrawal penalty?

Expert does your taxes

Do it yourself

Resources

Support

Expert does your taxes

Do it yourself

Resources

Support

If the annuity is paid out because the annuity has reached its annuitization date, do you still pay early withdrawal penalty?