We converted some of my husband's traditional IRA dollars to an annuity in 2016. We receive monthly payments from the annuity which were reported on a 1099-R. Are the funds in this annuity still considered a traditional IRA since we only pay taxes on the monthly distributions? I am trying to figure out the year-end value of his traditional IRA.
It depends if the annuity was purchased within the IRA (meaning that the IRA owns the annuity the same as any other investment within the IRA), or money was removed (distributed) from the IRA to purchase an annuity elsewhere.
The money was removed from the IRA. On form 5498 those funds were identified as rollover contributions. The annuity is through a different company.
After a total distribution, the year end value or your IRA is -0-.
What type of account is the annuity in? Is it an IRA? A rollover from a Traditional IRA can only go to another tax deferred retirement account. You need to ask the company that has the annuity is it is held within a Traditional IRA or is a non-IRA qualified annuity account.
It must be in another tax-deferred account because the 5498 shows "Rollover".
If you converted "some" of your IRA dollars then IRA dollars remain and you should have a year-end statement from the institution. showing the value on Dec 31 2016. You can also refer to the 2016 5498 showing the year-end value.
So here is the answer to my original question for anyone that may have my same situation. The money in the annuity is in an account that is considered an IRA but we didn't receive a for 5498 with the year end value of the annuity because the monies in the account are not accumulating and cannot be withdrawn. Therefore it is not a "Traditional" IRA and we do not include its value in the Traditional IRA(s) total value since there will be no required distribution from these funds.