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10 Year Averaging-Annuity?

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    10 Year Averaging-Annuity?

    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.

    #2
    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

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      #3
      ...
      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 OP said this was a purchased annuity, not an employer plan.

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