1099-R distribution code 6

[GERNZEE]

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]

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.

[GERNZEE]

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

[DoninGA]

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@GERNZEE wrote:

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

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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)

[ThomasM125]

It may show as income your income summary worksheet in TurboTax, but it may not be showing as taxable on line 4(b) on your tax return. You can check on this by viewing your tax return in TurboTax as follows:

1. Find the "Tax Tools" option on your left menu bar and click on it

2. Click on "Tools"

3. Click on "View Tax Summary"

4. On your left menu bar find the "Preview my 1040" option and click on it

The distribution should show on line 4(a), but not 4(b) of your form 1040.