Annuity 1099R Code 1 .... can she roll it over?

[LCP]

If taxpayer receives a 1099R for cashing out an annuity that has a code1 for a premature distribution, can it be assumed that the annuity was qualified and eligable for rollover treatment?

If non-qualified would there be premature distribution penalties??

[Brian EA]

If taxpayer receives a 1099R for cashing out an annuity that has a code1 for a premature distribution, can it be assumed that the annuity was qualified and eligable for rollover treatment?

If non-qualified would there be premature distribution penalties??

You cannot assumed that the annuity is qualified. It is either qualified or non qualified. If it is a qualified annuity you have 60 days to roll it over.

Non qualified distributions are taxed to the extent of the earnings. There is a penalty foe early distribution.

brian