IRA Annuity Roth Conversion

Forum|Forum|2 years ago
March 10, 2024
1 reply
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I converted my IRA annuity (3 year contract for interest guarantee was up for renewal) when renewing my 3 year guarantee contract to a Roth IRA Annuity. I did not a receive a 1099R and was told by the company issuing the annuity contract that I did not need one. I think I do need one but they insisted that I didn't. I'm not sure what to do.

Any ideas or steps I should take? Is the annuity issuer correct that I don't need a 1099R or do I just file including the amount converted without a 1099R?

dmertz

Level 15

If you converted the IRA annuity to Roth in 2023, the annuity provider is required to have sent you a Form 1099-R because the transaction constitutes a reportable distribution from the traditional IRA annuity. Only if the original annuity was already a Roth IRA annuity would no reporting be required.

If the original annuity was a nonqualified annuity, it's possible that no reporting would be required if the distribution from the old annuity was less than your investment in the contract, but the deposit into a Roth IRA annuity would then be a regular Roth IRA contribution subject to regular Roth IRA contribution limits.

ChrisSwimmerAuthor

Level 2

Thank you for your response. It matches what I thought but wasn't sure. Now, I have been having trouble convincing the annuity company to send me a 1099-R. I'm waiting for their latest response. They seem to think the move from my pretax dollar annuity with them to a Roth annuity with them does not require a 1099-R.

dmertz

Level 15

If it was a surrender of a life insurance contract for less than the investment in the contract, no Form 1099-R is required to be provided. However, I don't think that that exception to filing Form 1099-R applies to the surrender of an annuity contract.