diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/AnnotationResolver.java b/compiler/frontend/src/org/jetbrains/kotlin/resolve/AnnotationResolver.java
index 5f703fe203e..8ce55f494e2 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/AnnotationResolver.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/AnnotationResolver.java
@@ -180,13 +180,13 @@ public class AnnotationResolver {
     }
 
     @NotNull
-    public JetType resolveAnnotationType(@NotNull LexicalScope scope, @NotNull JetAnnotationEntry entryElement) {
+    public JetType resolveAnnotationType(@NotNull LexicalScope scope, @NotNull JetAnnotationEntry entryElement, @NotNull BindingTrace trace) {
         JetTypeReference typeReference = entryElement.getTypeReference();
         if (typeReference == null) {
             return ErrorUtils.createErrorType("No type reference: " + entryElement.getText());
         }
 
-        JetType type = typeResolver.resolveType(scope, typeReference, new BindingTraceContext(), true);
+        JetType type = typeResolver.resolveType(scope, typeReference, trace, true);
         if (!(type.getConstructor().getDeclarationDescriptor() instanceof ClassDescriptor)) {
             return ErrorUtils.createErrorType("Not an annotation: " + type);
         }
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/descriptors/LazyAnnotations.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/descriptors/LazyAnnotations.kt
index aa33fbffa6c..b692c7ba434 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/descriptors/LazyAnnotations.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/descriptors/LazyAnnotations.kt
@@ -122,7 +122,8 @@ public class LazyAnnotationDescriptor(
     private val type = c.storageManager.createLazyValue {
         c.annotationResolver.resolveAnnotationType(
                 c.scope,
-                annotationEntry
+                annotationEntry,
+                c.trace
         )
     }
 
diff --git a/compiler/testData/diagnostics/tests/annotations/typeAnnotations.kt b/compiler/testData/diagnostics/tests/annotations/typeAnnotations.kt
index 81718795d30..d0e22f7c574 100644
--- a/compiler/testData/diagnostics/tests/annotations/typeAnnotations.kt
+++ b/compiler/testData/diagnostics/tests/annotations/typeAnnotations.kt
@@ -1,6 +1,15 @@
 // !DIAGNOSTICS: -UNUSED_VARIABLE, -UNUSED_PARAMETER
 class A
 
-fun <!UNRESOLVED_REFERENCE!>@x<!> A.foo(a: <!UNRESOLVED_REFERENCE!>@x<!> Int) {
-    val v: <!UNRESOLVED_REFERENCE!>@x<!> Int = 1
-}
\ No newline at end of file
+@Target(AnnotationTarget.TYPE)
+annotation class x
+
+fun @x A.foo(a: @x Int) {
+    val v: @x Int = 1
+}
+
+fun <T> @x List<@x T>.foo(l: List<@x T>): @x List<@x T> = throw Exception()
+
+fun <T, U: T> List<@x T>.firstTyped(): U = throw Exception()
+
+val <T> @x List<@x T>.f: Int get() = 42
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/annotations/typeAnnotations.txt b/compiler/testData/diagnostics/tests/annotations/typeAnnotations.txt
index 6e65f67e336..52569f6d4d6 100644
--- a/compiler/testData/diagnostics/tests/annotations/typeAnnotations.txt
+++ b/compiler/testData/diagnostics/tests/annotations/typeAnnotations.txt
@@ -1,6 +1,9 @@
 package
 
-public fun @[ERROR : x]() A.foo(/*0*/ a: @[ERROR : x]() kotlin.Int): kotlin.Unit
+public val </*0*/ T> @x() kotlin.List<@x() T>.f: kotlin.Int
+public fun </*0*/ T, /*1*/ U : T> kotlin.List<@x() T>.firstTyped(): U
+public fun @x() A.foo(/*0*/ a: @x() kotlin.Int): kotlin.Unit
+public fun </*0*/ T> @x() kotlin.List<@x() T>.foo(/*0*/ l: kotlin.List<@x() T>): @x() kotlin.List<@x() T>
 
 public final class A {
     public constructor A()
@@ -8,3 +11,10 @@ public final class A {
     public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
     public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
 }
+
+@kotlin.annotation.Target(allowedTargets = {AnnotationTarget.TYPE}) @kotlin.annotation.annotation() public final class x : kotlin.Annotation {
+    public constructor x()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}