Q. Are survivor annuities paid to surviving spouse taxable? Distribution code on 1099-R is 4-Death Benefit and no federal income taxes were withheld.
A. Yes, they are. However, if there are any unexpended retirement contributions in the late spouse’s account, a portion of the annuity would be tax-free. For more information, go to https://www.irs.gov/publications/p721/index.html.