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Author: inparadise Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120801  
Subject: Re: Tax Issues on Inherited Annutiy Date: 4/6/2013 7:21 PM
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An annuity isn't an IRA, and the entire amount may have been taxable. You clear that up with the issuer.

The annuities were rolled into an inherited IRA. One was clear on what was and was not taxable, about 50/50, but the other was not. Frankly, never having been exposed to annuities before, I didn't even know enough to ask the question. I got no 1099-r from them and just called to confirm the amount without knowing what was what. It's one of my calls for Mon.

2012 has been filed, we just have to pay. Amending will be necessary, and hopefully result in our paying less. I'll see how much I can get cleared up Mon.

1099-R's for IRA distributions are always supposed to be coded "Taxable amount unknown" since no IRA custodian has the necessary information to compute it. You use Part I of Form 8606 to calculate the taxable portion.

OK, well my inherited IRA RMD 1099 shows full amount as taxable, not unknown. It was the 2011 annuity disbursement 1099R that showed the unknown box checked off in 2B and 2A filled in as fully taxable, even though the instructions on the back of the form say that if 2B is checked off as unknown, that 2A should have been left blank. If it is anything like the first annuity, the initial funds used to create it should not be taxable, and only the earnings taxed. The annuity would certainly have this on file.

These annuity companies have been a royal PITA to deal with from day 1.

IP
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