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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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I WAS SENT AN ANNUITY STATEMENT FROM PRUDENTIAL WHICH WAS LABELED

Customer Question

I WAS SENT AN ANNUITY STATEMENT FROM PRUDENTIAL WHICH WAS LABELED "TYPE IRA" I ALSO HAD A DISTRIBUTION LAST YEAR AND IN 2015 FOR 9000 AND 14000 RESPECTIVELY. HOW DO I DETERMINE HOW MUCH IS TAXABLE FOR NJ? I WAS UNDER THE IMPRESSION THAT ONLY A PORTION WOULD BE TAXABLE.CAN YOU HELP ME?
Submitted: 8 months ago.
Category: Tax
Expert:  Lev replied 8 months ago.
If that is IRA annuity - there are different rules.It looks that the annuity was purchased inside IRA account.
Expert:  Lev replied 8 months ago.
Annuity payments are going to IRA account and as such are not taxable,however when distributions are taken out of IRA account - they are generally fully taxable..It is possible that you contributed some after tax money into IRA account - if so that amount would be distributed tax free.Distribution will be reported on form 1099R and your administrator generally will determine taxable portion of your distribution.The full distribution is reported in box 1, and taxable portion is reported in box 2a.If all IRA contributions were deducted - amounts in boxes 1 and 2a will be equal..I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you will all tax related issues.

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