Is an IRA annuity included in the sum of all IRA's

I have no idea as to what purpose TT is asking you this question. You only receive 5498s in a year that you make a contribution to any type of "individual retirement arrangement". This would include an individual retirement annuity and an individual retirement account. If you did not receive a 5498 for the annuity it was because you did not contribute anything to the annuity in that year. Lastly, MRDs for IRAs are computed using the proper table in the appendix of IRS Pub 590. MRDs for the annuity are computed using the instructions in the regulations for Sec. 401 of the internal revenue code. So... you would never add the account balance in the annuity to the account balance in your own IRA to compute an MRD.

Perhaps they want an idea of the amount of assets so that they can try to sell you new products.

Seems like useful information to see if you have met the RMD disribution amount.

At my age am not yet under RMD rules, but I did have distributions from an Annuity purchased with funds held in an IRA. No distributions from my other traditional IRAs. I understand now that IRAs and Annuity follow parallel but separate paths as far as it concerns RMD and taxable fraction, however it seems that an Annuity purchased from IRA funds is still treated as an IRA, NOT an Annuity. TurboTax somehow computed what portion of the Annuity was taxable without knowing the total Annuity value which was not included in the IRA total value. TurboTax knew the total values of my other IRAs for which I received 5498 since I answered the question.

I am quite sure TT considered my basis on the IRA (which has been tracking long before the Annuity purchase) because it reduced my IRAs basis on the amount distributed from the Annuity. I think this is a little wrong, in the sense that I am being undertaxed, but it all wash out once the Annuity amount is added to the total and the basis is diluted.