10 Year Tax Averaging Method on Non Qualified Annuity

[tmtdae]

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?

[fanfare]

When you get a 1099-R with taxable amount determined,

you pay tax on the taxable amount shown.

[dmertz]

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.