My Aunt who I do not prepare her taxes can not get in touch with her CPA called me tonight. The code D in box 7 is a new code this year for section 1411. Her 1099R has box 1 gross distribution 27,000 box 2 7,000, box 5 34,000 box 7 code 7D. Taxable amount not determined not mark and total distribution not marked. She said it is a non qualified annuity and the person who sold it to her said at the time it would not be taxable until she withdraws. According to her she did not withdraw and has never received a 1099R in the past 10 years. I ran this in my 2013 tax software and it is taxing the 7,000 and she said that is not correct. Does anyone have any input on this it would be appreciated. Oh her net investment income is well under the threshold for section 1411 it is 69,000. She is 80 and lives off of investment income and SS.