If you receive a Form 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. with a code "6" in Box 7, it is indicating a tax-free exchange of life insurance, annuity, or endowment contracts under Section 1035. Generally, this form has no impact on your Federal tax return; however, it may impact your state tax return.

See the IRS Instructions for Forms 1099-R and 5498 for details.

Related Links

• Form 1099-R - Distribution Codes FAQ.
• See Internal Revenue Bulletin: 2007-21 for certain transactions that do not qualify as tax-free exchanges.
• For more information on partial exchanges of annuity contracts, see Internal Revenue Bulletin: 2011-30.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.