I'm using proseries and have a client who received a 1099r with a code 7D.
Gross amount 133615. and taxable amount 33984. (total distribution).
The total distribution was rolled over to another annuity, but I can't find any where to enter that amount as a rollover, causing the taxable amount to still be taxable
If you scroll down down down the 1099R worksheet, I think its Page 2 that has rollover options
Maybe I'm doing something wrong, but there is no place on page 2 of the 1099R worksheet to roll over the annuity.
I tried to use line B1 but that does not roll the taxable amount over (it seems to cover only IRAs), so where else could I enter to create the annuity rollover
It sounds like your client sold one annuity and bought another, and has a taxable amount of $33984 from interest earned on the first annuity that he traded in on the new annuity
You stated "indirect" and "rollover" and perhaps you meant "exchange?"
Google this:
section 1035 exchange annuity
If the company followed the IRS instructions and this was a Section 1035 exchange, then you would be looking for a "6" in Box 7:
"For section 1035 exchanges that are reportable on Form 1099-R, enter the total value of the contract in box 1, 0 (zero) in box 2a, the total premiums paid in box 5, and Code 6 in box 7."
A 1099-R isn't always coded correctly for what the taxpayer did with the money. The "sending" agency might not know this qualified as an exchange to the "receiving" entity. We see this all the time with conversions and rollovers.
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