1099-R 1035 exchange

[bugeater_32]

I did a qualified 1035 exchange from one life policy to a different one I received a check which I used to pay off my house the insurance company said that was a loan - they never told me it was a loan btw... so of the money that was left as made as interest I pulled into a new insurance carrier.  I discussed this at length with all parties, the initial insurance carrier won't change the designation in box 7 because they feel there's still a "loan" even though the policy was exchanged.  I have all the paper work to prove that. 

[ColeenD3]

Whatever amount you rolled over into your  new annuity or life insurance within 60 days can be reconciled within the program.

If it was longer than the 60 day time period, then they are correct and it is considered a distribution.

[macuser_22]

What code is in box 7?

A 1035 insurance exchange would have a code "6" or possibly a code "6W"

A code 1,2 or 7 would indicate a normal distribution.

[PipeGuy]

So, where in TT does the 1035 exchange get reconciled?  I did a straight exchange of annuities to get a slightly better payout percentage in two years.  The exchange was handled on the same day by my FA.  Bx 7 is coded "6".

[macuser_22]

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

[PipeGuy]

Thanks for the info.  I had already entered all my 1099's and was concerned that the 1035 exchange was being counted as income.  Concern was unfounded as TT handled it correctly and was not adding the 1035 amount as income.  All is good.