Reply To: 1099-R on Roth IRA annuity payment

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For all 1099-R forms on this annuity, the only references to this being Roth are the immediate annuity account number and, except for the 1099-R at issue, the code Q which translates to “Qualified distribution from a Roth IRA”.

2009-11: rollovers from 403(b) to T-IRAs.
2009-12: conversion of T-IRAs to Roth IRAs
2014: immediate annuity from one Roth IRA

I guess what you are suggesting is that I might not have been taxed on the full amount of the Roth conversion because TIAA understated the amount that got converted? I can try to check into that.

But the error wasn’t just on my account. It may have been across the board on all variable annuities, or at least all variable accounts based on a particular portfolio. Other participants in the Morningstar TIAA forum report the same error occurring in their annuities–but either their annuities were taxable, or if they were qualified the amount of the improperly taxed amount was so small it wasn’t worth disputing.

According to a letter from TIAA, the error had something to do with under-calculating the Annuity Unit Value, which depends on market values.

I continue to be suspicious that from the very beginning, even before getting to issuing 1099-Rs, TIAA failed to notice that some of the annuities affected were Roth. And now they are saying that at the outset they determined the Roth corrections were properly taxable.