Annuity withdrawal

[Margaret CPA in OH]

Client included in papers from Lincoln Financial Group a 4th quarter annuity statement.  It shows Contributions $33,124.75, Total Withdrawals $10,000, YTD Withdrawals $10,000, Cost Basis $4,998.58, Gain/Loss $9600.76.  The next line says Your Tax Information YTD Taxable Amount $10,000, TYD Non-Taxable $0, Fed and state no taxes withheld.

I've never seen such a thing.  The only other annuity withdrawals I've seen have been reported on a 1099R form.  I believe client's father died so may be relevant.  For cost basis and gain/loss, well, I can't figure out how that was derived.  If the basis was $4998.58, I can't make my calculator come up with a gain of $9600.76.  Ideas?

[FDNY]

Looks like a variable annuity, I think they make those statements so you can't understand them because of all the fees.  There must be a 1099R around for the distribution. 

[Margaret CPA in OH]

Yes, I was thinking there should be a 1099-R, too, but there isn't except, except one from a Life Ins Co with a code 4D. However, none of the figures anywhere even remotely resemble the ones I posted.  Plus there is tax withheld.  Well, on my list - a long one - of missing info.  Sigh...

 

[TAXMAN]

I think I read somewhere when these annuities pay out , its last in first out meaning they pay out the earnings first. At least that was what I found. I can't get your numbers to match up but think there should be a 1099R also.

[Randall]

Should be a 1099R.  Client needs to request a copy from Ins co.