Annuity To 401(k) Question

We got a call from Vicky, whose 403(b) from an old employer was rolled over to a 401(k). She then got a 1099 for the annuity. She’s wondering if that’s normal, since she didn’t get a 1099 from any of the other accounts that got rolled over.

According to one EA who emailed me, receiving a 1099R is normal, but it shouldn’t show any income on the tax return. He says it’s the way the IRS tracks the money.

I told Vicky to check back with the Annuity company to make sure nothing had happened that shouldn’t have.

December 28, 2008