24601NoMore
Thinks s/he gets paid by the post
- Joined
- Dec 8, 2015
- Messages
- 1,166
Why would we get a 1099-R (indicating a potentially taxable distribution) from an insurance carrier on a Multi-Year Guaranteed Annuity (MYGA) that we did a "free look" re-issue on?
We bought a MYGA through BluePrint Income earlier this year, and the rate went up during the "free look" 30 days that we had to review the actual contract. So, naturally, we asked for the higher rate which they gave us.
That generated a new contract and a new account #, but we never got the money back into our hands. Yet, we just received a 1099-R for the full amount of the annuity, with the distribution code being "7D".
I looked up 7D, and it says it is a Normal distribution from a non-qualified annuity. "D" also apparently means "Annuity payments from nonqualified annuities and distributions from life insurance contracts that may be subject to tax under section 1411.".
Why on earth would we get a 1099-R for a re-issue of a MYGA? It essentially says we got this (very large) distribution that is potentially taxable..
More importantly..how in the heck would we report this on our taxes? I don't want the IRS thinking we got this big chunk of taxable $$ in our hands that we never got.
We bought a MYGA through BluePrint Income earlier this year, and the rate went up during the "free look" 30 days that we had to review the actual contract. So, naturally, we asked for the higher rate which they gave us.
That generated a new contract and a new account #, but we never got the money back into our hands. Yet, we just received a 1099-R for the full amount of the annuity, with the distribution code being "7D".
I looked up 7D, and it says it is a Normal distribution from a non-qualified annuity. "D" also apparently means "Annuity payments from nonqualified annuities and distributions from life insurance contracts that may be subject to tax under section 1411.".
Why on earth would we get a 1099-R for a re-issue of a MYGA? It essentially says we got this (very large) distribution that is potentially taxable..
More importantly..how in the heck would we report this on our taxes? I don't want the IRS thinking we got this big chunk of taxable $$ in our hands that we never got.