Received a 1099-R from John Hancock. Box1 has $408, Box 2a has $0.00, Box 7 has "W" and box 8 (other) has $408. I have a whole life policy with John Hancock with a LTC rider. The $408 in box 1 is the amount deducted from my life policy cash value to pay premium or charges for the coverage under the LTC rider. TurboTax Premium for Mac asked me "What did I do with the Money from John Hancock Life Ins.? Did I move it to another retirement Acct or returned it to the same act OR did I cask it out. The second question asked if I rolled it over? Why these questions?
These questions are standard. They are asked to help determine the taxability of the withdrawal.
Did you move it to another retirement Acct or returned it to the same account? This would be non-taxable.
OR did you do something else with it? This would be taxable.
The second question asked if you rolled it over? This is non-taxable.
The code W represents – Charges/payments for purchasing qualified long-term care insurance contracts under combined arrangements
These questions are standard. They are asked to help determine the taxability of the withdrawal.
Did you move it to another retirement Acct or returned it to the same account? This would be non-taxable.
OR did you do something else with it? This would be taxable.
The second question asked if you rolled it over? This is non-taxable.
The code W represents – Charges/payments for purchasing qualified long-term care insurance contracts under combined arrangements
When I worked on my return this weekend, I checked "Moved the money to another retirement account (or returned it to the same account"and checked "rolled over all of the money to an IRA or other retirement account (or to the same account.)" Both seemed like the most likely responses since it is not-taxable. Was just curious why it asked me since box 2a (taxable amount) was $0.00. Thanks for your previous response.