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1099r Rollover or Not

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    1099r Rollover or Not

    Client received 1099R from Fidelity showing 245,000 taxable normal distribution when actually 215,000 was directly transferred out to purchase 2 annuities with client receiving the 30,000. Client tried to get Fidelity to reissue the 1099 to show only the 30,000 taxable...they would not. Can I report the 215 as a rollover and the 30 taxable, or is it in fact all taxable since the 215 bought annuities?
    John

    #2
    It depends on if the annuities are under a IRA or non-IRA account.

    Comment


      #3
      Also refer

      Apply your specific scenario to

      You can roll over your IRA, 401(k), 403(b), or lump sum pension payment into an annuity tax-free.


      Also refer to PUB 575
      Always cite your source for support to defend your opinion

      Comment


        #4
        Type of annuity purchased determines your answer

        You will need to obtain more information from your client and/or Fidelity.

        Was this an institution-to-institution transaction? If so, the Form 1099-R is probably correct. What is the letter code shown in Box 7 ?

        Funds placed into a plain vanilla annuity cannot be deemed a qualifying rollover.

        Funds placed into an Individual Retirement Annuity likely can be deemed a qualifying rollover.

        Info: http://www.wsj.com/articles/SB123819047047960763

        FE

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