1099-R---Death of Spouse

[Bees Knees]

If you are asking whether a rollover is taxable simply because the 1099-R shows a taxable amount, then the answer is, no, it is not taxable, as long as the taxable portion of the distribution was rolled over.

[Super Mom]

Thus far, my research is telling me that transfer of ownership is usually taxable, but not between spouses. Voting not taxable??

[Bees Knees]

If I understand your question correctly, you have a 1099-R that shows the gross distribution as being greater than the taxable amount. Since it is a non-qualified annuity, it is possible that a portion of the distribution is a non-taxable return of basis. If there is a life insurance element, that too could make up a portion of the non-taxable amount.

I would tend to report the 1099-R exactly as it is. Thus, whatever it says is taxable, I would say it is taxable, unless the taxpayer can get the insurance company to issue a corrected 1099-R, or explain exactly why the 1099-R is wrong. Only the insurance company issuing the 1099-R has all the details necessary to determine how much of the distribution is taxable.

[Super Mom]

My question is, I have a 1099-R for a widow, with 4 as the distribution code and and amount of the distribution and the taxable amount. My first question, was is the taxable amount a death benefit (non-taxable) and was since told that she would NOT have received that form if it were not taxable. I spoke with the investment counselor today and he said "it was underwater, really made no money but doesn't know original cost basis" then went on to explain that this was a "death benefit from a non qualified anuity" and he didn't know if that was taxable or not. The amount was rolled directly into another annuity in the spouse's name. Is the 'taxable' amount on the 1099-R really taxable to the widow?