We are retired and received 1099-R forms for our retirement accounts. Do we need to report these as income even though we are not drawing upon them?

A Form 1099-R would not have been issued unless there was a distribution or a rollover to another fund.  What is the code in box 7?

The letter designation in box 7 is G

That indicates that you had a Rollover of the account to another account or to the same account.  Did you move funds from one account to another account?  If so, which type of account were the funds moved from and the type of the account the funds were moved to?

The funds went from a 457b to an annuity.

You will need to report the Form 1099-R.  Make sure that you indicate the funds were moved to another account when asked during the follow-up question for what you did with the money.

To enter a form 1099-R -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Scroll down to Retirement Plans and Social Security
• On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

Or enter 1099-r in the Search box located in the upper right of the program screen.  Click on Jump to 1099-R