MY MIL who recently died had purchased a Value Plus Fixed Annuity many years ago investing --$15,000. As executor, I liquidated it at its current value-- $70,000 and am looking at being taxed on the $55,000 gain.
Since she (the participant) was born prior to 1/2/36 and I took a total distribution of the funds, Form 4972-- Lump-Sum Distribution allows this gain to be taxed at a much lower rate IF the annuity is a "qualified plan" -- whatever that means.
I have the 1099-R and called the insurance company that the annuity was purchased from-- but I can't get anyone who speaks understandable English, much less can tell me if the annuity is a qualified plan!
So how can I tell?