topic Re: rollover in Retirement tax questions

rollover

jeanavarc — Tue, 16 Feb 2021 01:53:38 GMT

is buying an annuity using retirement distribution funds considered a rollover?

Re: rollover

npierson7 — Tue, 16 Feb 2021 02:16:18 GMT

It depends. A rollover is the transfer of money from one retirement plan to another. You have 60 days to deposit the funds into your new qualified account without penalty. Otherwise, it'll be treated as income.

If completed properly, an annuity rollover is not a taxable event since the money remains within a designated retirement plan.

Re: rollover

SweetieJean — Tue, 16 Feb 2021 02:20:45 GMT

Is it a qualified annuity (such as an IRA), or a non-qualified one?

Re: rollover

Ern123 — Thu, 25 Feb 2021 23:02:15 GMT

I got a 1099-R for an annuity rollover into another annuity. I did not touch any money from it, just rolled it into another account. How do I get the 1099-R changed, or can I just not enter it on my return?

Re: rollover

SweetieJean — Thu, 25 Feb 2021 23:08:23 GMT

You must still enter it in Federal > Wages and Income > Retirement. But then there will be a question that asks if you did a rollover.

Re: rollover

DavidD66 — Thu, 25 Feb 2021 23:20:52 GMT

An annuity can be qualified (inside a retirement account) or a non-qualified annuity that is not in a retirement account. You can move money from one non-qualified annuity to another non-qualified annuity in a 1035 Exchange that is not a taxable event. If you do no do it properly, it will be a taxable event. You can also liquidate an annuity within a qualified account and put the money in another annuity within the same qualified account, and that is not a taxable event, as the funds weren't withdrawn from the qualified account. If you liquidate an annuity inside a qualified account, withdraw the funds, and roll those funds over to another qualified account (whether you reinvest in another annuity or not) within 60 days, it is a tax free rollover. You would receive a 1099-R for the distribution.

After you enter(ed) the 1099-R, there is a page that asks "What Did You Do With The Money From [Retirement Plan]"? See Screen Shot below.

Be sure you indicate first that you "...moved the money to another retirement account (or returned it to the same retirement account)." and the you "rolled over all of this money to another IRA or other retirement account (or returned it to the same account)."

Re: rollover

Ern123 — Sat, 27 Feb 2021 20:19:47 GMT

I can't for the life of me seem to find that screen shot that you put in your response. What am I doing wrong? Regret being a pain in the butt!

Re: rollover

Irene2805 — Mon, 01 Mar 2021 18:10:20 GMT

The screen that DavidD66 references should appear a few screens (3-4) after the 1099R entry screen (depending on your information).

The screens you see depend on what codes are entered in Box 7 of your 1099-R. Please reply in this thread with the code(s) you have listed in Box 7.

@Ern123