1099-R code 6 in box 7

[David]

TP has a 1099-R from an insurance company. Box 1 gross distributions are $171K. Taxable amount in box 2a shows zero. Nothing is checked in box 2b.

Box 5, reports insurance premiums as $140K.

Box 7 reports a code 6.

Per the IRS instructions the taxable portion should be indicated in box 2a. If the taxable amount can not be determined then box 2b should be checked.

Is none of this taxable since box 2a shows $0? Or is $31K taxable which is the difference between the gross distribution minus the $140K insurance premiums?

Thanks.

[jasdlm]

Isn't Box 6 for a 1035 exchange? If so, I think the 0 in the taxable income box is correct.

[David]

Thanks - I wanted to be sure.

Have a great week going into the home stretch.