topic 1099R in Investing

1099R

Limey — Tue, 10 Feb 2026 11:16:58 GMT

my wife inherited an annuity and received a 1099R. When the data is entered it eventually comes up with 'Tell us when the person was born'. Although we check 'this person was born after December 31 1950 it come up with 'since you are over 73 was some of the money used for RMD. My wife is not over 73 and also I didn't think an annuity had an RMD

Re: 1099R

DianeW777 — Mon, 19 Feb 2024 22:37:38 GMT

No, an annuity does not have an RMD. You should not be asked about the age of the plan initiator. I was unable to recreate your scenario and here are some steps as well as tips for entry.

The codes in Box 7 should direct TurboTax appropriately. I would expect a code 7 and code D in which case it will likely all be taxed.

Search (upper right) > Type 1099r > Click the Jump to... link > Select the 1099-R to be reviewed/edited
Make sure to select 'None of the above' on the screen 'Let us know a little more about this distribution'.
When you go through the questions be sure to select 'No' for IRA, HSA, etc.

Please update here with additional details if you have more questions.

Re: 1099R

Limey — Tue, 20 Feb 2024 13:29:26 GMT

thanks for the reply. I will try what you suggested. Just to give you more information. The annuity was inherited from my wife's mother. We received 2 payments. The 1099R we received had numbers in 1 and 5 only, and in 7 was 4D

Re: 1099R

Limey — Tue, 20 Feb 2024 21:56:18 GMT

I tried to fill out the 1099-R using the method you suggested and I still get the same results, it comes up with 'we need to determine the age ...' with 3 choices. I choose 'Born after December 31 1950' and it says under the heading, About this Retirement Account - 'since Carol is over 73'. She isn't and its an annuity

Re: 1099R

MarilynG1 — Tue, 20 Feb 2024 22:41:58 GMT

An annuity can be a Retirement Account, (some government retirement plans, for instance), where an RMD is required. In an inherited retirement account, if the original accountholder would be over 73, (or was already taking distributions), there may be an RMD requirement, even if the beneficiary is not 73.

Indicate in TurboTax that 'all of the distribution was RMD' if you are asked this question.

Your Code 4D in Box 7 indicates a Non-Qualified Annuity. The amount in Box 5 is what was contributed after-tax, so that amount is not taxable, and that may be reflected in the difference between Box 1 and Box 2a on your 1099-R (if there is an amount in Box 2a). If not, TurboTax is trying to determine the taxable portion of the distribution for you by asking certain questions. It normally would be the difference between Box 1 and Box 5, which would be the Earnings on the annuity.

Here's more info on Non-Qualified Annuities.