Had a client come in today with a 1099-R. Though the "x" is not marked for total distribution, it is a total distribution. This income is from an annuity she purchased about 10 years ago. Don't know much about the averaging. Does anyone know if this would be eligible for the tax benefit. She is 86 years old.
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Is there an A in the code box?
Form 4972:
What Is a Qualified
Lump-Sum Distribution?
It is the distribution or payment in 1 tax
year of a plan participant’s entire balance
from all of an employer’s qualified plans of
one kind (for example, pension,
profit-sharing, or stock bonus plans) in
which the participant had funds. The
participant’s entire balance does not
include deductible voluntary employee
contributions or certain forfeited amounts.
The participant must have been born
before January 2, 1936.
Right age. Start with the form instuctions and go on from there.JG -
The OP said this was a purchased annuity, not an employer plan....
What Is a Qualified Lump-Sum Distribution? It is the distribution or payment in 1 tax year of a plan participant’s entire balance from all of an employer’s qualified plans of one kind (for example, pension, profit-sharing, or stock bonus plans) in which the participant had funds.Comment
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