Question

1099-R payment from nonqualified annuity

Forum|Forum|5 years ago
February 2, 2021
1 reply
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How do I handle a1099-R with codes D7 in box 7, when gross distribution was 7196., federal tax withheld 11968., and state tax withheld 4787.? (Taxes withheld much more than distribution) In 2020, I did a 1035 exchange of a life insurance policy and got another 1099-r with code 6 in box 7

S

sls50211

That is very confusing. I could understand if the box 1 amount was higher and the box 2a was the 7196 but that seems really odd the box 1 amount is more than the withholding amounts. The 2nd 1099R with code 6 should not be taxable. I might recommend contacting your the annuity company for an explanation. Generally, there would be an amount in box 5 also for you original contribution amount. Something seems wrong.