10 Year Tax Averaging Method on Non Qualified Annuity
As beneficiary of a non-qualified annuity, I received a 1099R with code 4D checked in box 7. The deceased was born before 1936 but I don't think I qualify for the special 10 year averaging process as this is not from a qualified plan. Can you confirm?
02325
2 Replies
fanfare
Level 15
Feb 8, 2022 9:50:21 AM
When you get a 1099-R with taxable amount determined,
you pay tax on the taxable amount shown.
dmertz
Level 15
Feb 8, 2022 5:05:28 PM
You can't use 10-year tax averaging on a nonqualified distribution such as the one that you received (the code D indicates nonqualified). 10-year tax averaging is potentially permissible only on a lump-sum distribution from a qualified retirement plan.