diff --git a/engine/runtime-compiler/src/main/scala/org/enso/compiler/pass/desugar/ComplexType.scala b/engine/runtime-compiler/src/main/scala/org/enso/compiler/pass/desugar/ComplexType.scala
index f29e8f4155..2857183c6b 100644
--- a/engine/runtime-compiler/src/main/scala/org/enso/compiler/pass/desugar/ComplexType.scala
+++ b/engine/runtime-compiler/src/main/scala/org/enso/compiler/pass/desugar/ComplexType.scala
@@ -26,7 +26,7 @@ import org.enso.compiler.pass.analyse.{
   TailCall
 }
 import org.enso.compiler.pass.lint.UnusedBindings
-import org.enso.compiler.pass.optimise.{LambdaConsolidate}
+import org.enso.compiler.pass.optimise.LambdaConsolidate
 import org.enso.compiler.pass.resolve.{
   DocumentationComments,
   IgnoredBindings,
@@ -125,6 +125,7 @@ case object ComplexType extends IRPass {
           lastAnnotations = Seq()
           res
         case _ =>
+          lastAnnotations = Seq()
           None
       }
       // TODO[MK] this is probably removable
diff --git a/engine/runtime-integration-tests/src/test/scala/org/enso/compiler/test/pass/desugar/ComplexTypeTest.scala b/engine/runtime-integration-tests/src/test/scala/org/enso/compiler/test/pass/desugar/ComplexTypeTest.scala
index f0e50df5bf..6bf6f66046 100644
--- a/engine/runtime-integration-tests/src/test/scala/org/enso/compiler/test/pass/desugar/ComplexTypeTest.scala
+++ b/engine/runtime-integration-tests/src/test/scala/org/enso/compiler/test/pass/desugar/ComplexTypeTest.scala
@@ -86,6 +86,28 @@ class ComplexTypeTest extends CompilerTest {
       tp.members(1).name.name shouldEqual "Bar"
     }
 
+    "have their annotations correct" in {
+      val ir =
+        """
+          |type MyType
+          |    @a 42
+          |    bar self = self
+          |
+          |    Foo
+          |""".stripMargin.preprocessModule.desugar
+      ir.bindings.length shouldEqual 3
+
+      val tp = ir.bindings(0).asInstanceOf[Definition.Type]
+      tp.name.name shouldEqual "MyType"
+      tp.members(0).name.name shouldEqual "Foo"
+
+      val a = ir.bindings(1).asInstanceOf[Name.GenericAnnotation]
+      a.name shouldEqual "a"
+
+      val bar = ir.bindings(2).asInstanceOf[definition.Method.Binding]
+      bar.methodName.name shouldEqual "bar"
+    }
+
     "have their methods desugared to binding methods" in {
       ir.bindings(3) shouldBe an[definition.Method.Binding]
       val isJust = ir.bindings(3).asInstanceOf[definition.Method.Binding]