Sorry if I didn't make that clear. She rolled her traditional IRA over to purchase this Annuity IRA. Then she also took 50k from another account (some sort of annuity that the 50k was almost all not taxable on the 1099R ) and put it into the same IRA annuity that I believe she will get monthly payments for the rest of her life from. So the total cost of the new annuity is 140k, but part of it came from qualified funds, and part from non-qualified funds. On the 1099R she received from the insurance company for the new annuity it has the IRA box checked.