1099-R distribution code 6

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I have entered a rollover into Turbo tax with a distribution code of 6 and the rollover is being added to annual income even though nothing is entered on line 2.

ColeenD3

Alumni - Intuit

Make sure that is actually on the taxable Line 4d, not just on 4c.

What is a 1035 Tax Free Exchange?

A 1035 tax free exchange is the I.R.S. tax code that allows for the rollover of a non-qualified annuity (or transfer of a life insurance policy) to a new annuity or life policy of equal or greater value. Capital gains and/or income taxes will not be realized from this type of transfer when completed properly.

There are only three examples of a 1035 exchange:

Annuity to Annuity
Life Insurance to Life Insurance
Life Insurance Cash Value to Annuity

The I.R.S. does not allow for a 1035 exchange from a tax deferred annuity to any type of life insurance policy. If you want to buy a life insurance policy with the proceeds from an existing annuity, you will first have to annuitize (or surrender) your annuity and pay taxes on any deferred gains.

GERNZEEAuthor

Level 2

Can I change the line that Turbo Tax puts this 6 distribution on

DoninGA

Level 15

@GERNZEE wrote:

Can I change the line that Turbo Tax puts this 6 distribution on

The distribution amount from the 1099-R with a code of 6 in box 7 should be entered on the Form 1040 Line 4c and if there was not amount entered in the box 2a of the 1099-R, then Line 4d will be blank (empty)