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jrmaneval
New Member

How do I handle a 1099R tax doc transferring a vehicle into a family trust?

Amounts are in boxes 1 & 5. Box 2A is blank. Zero fed tax w/h. Distr code in box 7 is "D7". I did not take possession of any funds. Isn't this a rollover?
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dmertz
Level 15

How do I handle a 1099R tax doc transferring a vehicle into a family trust?

No, it's not a rollover.  It's a surrender of the original policy, shown an nontaxable in box 2a because the amount paid for the policy, shown in box 5, is greater than the gross distribution amount shown in box 1.  The surrender of the original policy was apparently followed by the purchase of a new policy by the trust with the proceeds from the surrender of the original policy.

Enter the Form 1099-R under Wages & Income -> Retirement Plans and Social Security -> IRA, 401(k), Pension Plan Withdrawals (1099-R), then answer the follow-up questions for this nonqualified policy.

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dmertz
Level 15

How do I handle a 1099R tax doc transferring a vehicle into a family trust?

No, it's not a rollover.  It's a surrender of the original policy, shown an nontaxable in box 2a because the amount paid for the policy, shown in box 5, is greater than the gross distribution amount shown in box 1.  The surrender of the original policy was apparently followed by the purchase of a new policy by the trust with the proceeds from the surrender of the original policy.

Enter the Form 1099-R under Wages & Income -> Retirement Plans and Social Security -> IRA, 401(k), Pension Plan Withdrawals (1099-R), then answer the follow-up questions for this nonqualified policy.

View solution in original post

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