Non qualified annuity withdrawal

[arenaant6819]

I have annuity 3 years old I put after tax 100000 do to a situation I had to withdraw half 50000 after surrender fee and other fees 10% early withdrawal I net 420000 I got 1099r why am I paying tax on this money when I put in after tax 

Box 1 42000

Box 2a taxable is blank

Box 2b is checked tax not determined

[Mike9241]

whats the letters in box 7

you received a nonperiodic distribution before the annuity starting date from the nonqualified plan(?), it is allocated first to earnings (the taxable part) and then to the cost of the contract (the tax-free part)3. Make sure to accurately report this information to ensure your tax filing is correct.

the tax free part goes in 9b

this forum has no way to determine the taxable vs nontaxable part. that has to come from the annuity company 

[arenaant6819]

Codes are D1

[RobertB4444]

D is a distribution from a non-qualified annuity.  1 is an early distribution with no exception.  That means you'll have to pay penalties for an early withdrawal even though the amount that you took out was non-taxable.

@arenaant6819