What is 1099-R Box 10 - Amount allocable to IRR within 5 years?

[SouthShore]

What is Box 10 IRR?

I have an entry in a 1099-R, Box 10.  This is due to annuitizing an individual IRA Annuity into a Joint Life Annuity in 2022. It is the same amount as in Boxes 1 and 2a.

The amount in box 10 is the total amount of the annuity payments made in 2022.  This was entered into TT-2022 (PC Windows version), but it doesn't appear to have caused any additional forms (eg, 5329) to have been generated. 

This amount was also applied to my total RMDs due.  The rest of the RMD total due was covered by distributions form other (normal, non-annuity) IRAs of mine as I have done in the past.

Is there anything I should be concerned about here due to this annuitization?

If it matters, Taxes were also with-held from the annuity payments.

Thanks much!

[dmertz]

Box 10 of a Form 1099-R has nothing to do with a distribution from any kind of IRA.  It only applies to distributions from a designated Roth account in a qualified retirement plan like a 401(k) (code H or code B in box 7 of the Form 1099-R).

What is the code in box 7 of the Form 1099-R provided by the payer?

Is the IRA/SEP/SIMPLE box marked?

[SouthShore]

Hello dmertz ...

Thank you for your very quick response!

Box 7 Distribution Code is 7, Normal Distribution.

Yes, the IRA/SEP/SIMPLE box is marked X.

Seems like the Insurance Company (the Payer) is somewhat confused?

Do I need to contact them for a Corrected 1099-R? Or just TT-2022, and hopefully the IRS, ignore this inconsistency?

Thanks much!

[dmertz · Accepted solution]

That Form 1099-R indicates a normal distribution from a traditional IRA, so it should definitely not have any entry in box 10.  Yes, I would contact the payer to get a corrected Form 1099-R, but you could probably get away with just omitting the box 10 entry from TurboTax's 1099-R form.

If you imported the Form 1099-R into TurboTax, I would look at the printed Form 1099-R to see that box 10 was not populated due to some sort of importing error and was truly an error made by the payer.

[SouthShore]

Super!  Thanks very much!

(It was a paper 1099-R)