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posted Jun 1, 2019 12:38:46 PM

Retirement / Pension / Social Security Is it an annuity same as an IRA? I am working on my Federal tax and I am in 1099R. It is asking me about an inherited IRA.

I'd like to add distributions inherited from my mom. I thought it was an annuity but the question Turbo Tax asks is about inherited IRA. are they the same?

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Level 15
Jun 1, 2019 12:38:46 PM

An IRA can be invested in an annuity, in which case it's an IRA annuity.  However, if it's an IRA (IRA/SEP/SIMPLE box marked), the distribution is governed by IRA rules, not by annuity rules.  If box 7 has code 4 and the IRA/SEP/SIMPLE box is marked, it's an IRA (and it doesn't matter if the IRA is invested in an annuity or not).

1 Replies
Level 15
Jun 1, 2019 12:38:46 PM

An IRA can be invested in an annuity, in which case it's an IRA annuity.  However, if it's an IRA (IRA/SEP/SIMPLE box marked), the distribution is governed by IRA rules, not by annuity rules.  If box 7 has code 4 and the IRA/SEP/SIMPLE box is marked, it's an IRA (and it doesn't matter if the IRA is invested in an annuity or not).