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ent1ent1
New Member

Is cashing in a qualified annuity and immediately transferring the funds to an IRA a taxable event? How do I handle the 1099-R?

I'm not sure what additional info or boxes to check on the TurboTax 1099-R form if this is not a taxable event.

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MargaretL
Employee Tax Expert

Is cashing in a qualified annuity and immediately transferring the funds to an IRA a taxable event? How do I handle the 1099-R?

You will have to indicate in TurboTax that you rolled over the money to an IRA account (see pic).

Please enter the 1099-R into the program exactly as it appears and be sure to answer the follow up questions.  Once you indicate the immediate rollover, the software will place your distribution as nontaxable income (It will be included in your total income on form 1040 but not as taxable).

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1 Reply
MargaretL
Employee Tax Expert

Is cashing in a qualified annuity and immediately transferring the funds to an IRA a taxable event? How do I handle the 1099-R?

You will have to indicate in TurboTax that you rolled over the money to an IRA account (see pic).

Please enter the 1099-R into the program exactly as it appears and be sure to answer the follow up questions.  Once you indicate the immediate rollover, the software will place your distribution as nontaxable income (It will be included in your total income on form 1040 but not as taxable).

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