diff --git a/python/src/com/jetbrains/python/codeInsight/intentions/PyAnnotateVariableTypeIntention.java b/python/src/com/jetbrains/python/codeInsight/intentions/PyAnnotateVariableTypeIntention.java
index 94f0c7d4f45a..f0bb668bf60c 100644
--- a/python/src/com/jetbrains/python/codeInsight/intentions/PyAnnotateVariableTypeIntention.java
+++ b/python/src/com/jetbrains/python/codeInsight/intentions/PyAnnotateVariableTypeIntention.java
@@ -1,6 +1,7 @@
 // Copyright 2000-2018 JetBrains s.r.o. Use of this source code is governed by the Apache 2.0 license that can be found in the LICENSE file.
 package com.jetbrains.python.codeInsight.intentions;
 
+import com.intellij.codeInsight.TargetElementUtil;
 import com.intellij.openapi.editor.Editor;
 import com.intellij.openapi.project.Project;
 import com.intellij.openapi.roots.ProjectFileIndex;
@@ -60,7 +61,8 @@ public class PyAnnotateVariableTypeIntention extends PyBaseIntentionAction {
 
   @NotNull
   private static List<PyTargetExpression> findSuitableTargetsUnderCaret(@NotNull Project project, Editor editor, PsiFile file) {
-    final PyReferenceOwner elementAtCaret = PsiTreeUtil.getParentOfType(file.findElementAt(editor.getCaretModel().getOffset()),
+    final int offset = TargetElementUtil.adjustOffset(file, editor.getDocument(), editor.getCaretModel().getOffset());
+    final PyReferenceOwner elementAtCaret = PsiTreeUtil.getParentOfType(file.findElementAt(offset),
                                                                         PyReferenceExpression.class, PyTargetExpression.class);
     if (elementAtCaret == null) {
       return Collections.emptyList();
diff --git a/python/testData/intentions/PyAnnotateVariableTypeIntentionTest/annotationCaretAtDefinitionNameEnd.py b/python/testData/intentions/PyAnnotateVariableTypeIntentionTest/annotationCaretAtDefinitionNameEnd.py
new file mode 100644
index 000000000000..582a03a0fe76
--- /dev/null
+++ b/python/testData/intentions/PyAnnotateVariableTypeIntentionTest/annotationCaretAtDefinitionNameEnd.py
@@ -0,0 +1 @@
+var<caret> = 42
\ No newline at end of file
diff --git a/python/testData/intentions/PyAnnotateVariableTypeIntentionTest/annotationCaretAtDefinitionNameEnd_after.py b/python/testData/intentions/PyAnnotateVariableTypeIntentionTest/annotationCaretAtDefinitionNameEnd_after.py
new file mode 100644
index 000000000000..9d46ae8fb48c
--- /dev/null
+++ b/python/testData/intentions/PyAnnotateVariableTypeIntentionTest/annotationCaretAtDefinitionNameEnd_after.py
@@ -0,0 +1 @@
+var: [int] = 42
\ No newline at end of file
diff --git a/python/testData/intentions/PyAnnotateVariableTypeIntentionTest/annotationCaretAtReferenceEnd.py b/python/testData/intentions/PyAnnotateVariableTypeIntentionTest/annotationCaretAtReferenceEnd.py
new file mode 100644
index 000000000000..7459113dbfc4
--- /dev/null
+++ b/python/testData/intentions/PyAnnotateVariableTypeIntentionTest/annotationCaretAtReferenceEnd.py
@@ -0,0 +1,2 @@
+var = 42
+var<caret>
\ No newline at end of file
diff --git a/python/testData/intentions/PyAnnotateVariableTypeIntentionTest/annotationCaretAtReferenceEnd_after.py b/python/testData/intentions/PyAnnotateVariableTypeIntentionTest/annotationCaretAtReferenceEnd_after.py
new file mode 100644
index 000000000000..1c954963aa0f
--- /dev/null
+++ b/python/testData/intentions/PyAnnotateVariableTypeIntentionTest/annotationCaretAtReferenceEnd_after.py
@@ -0,0 +1,2 @@
+var: [int] = 42
+var
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/python/intentions/PyAnnotateVariableTypeIntentionTest.java b/python/testSrc/com/jetbrains/python/intentions/PyAnnotateVariableTypeIntentionTest.java
index 1e3cc65a4d6c..044a0b653b6d 100644
--- a/python/testSrc/com/jetbrains/python/intentions/PyAnnotateVariableTypeIntentionTest.java
+++ b/python/testSrc/com/jetbrains/python/intentions/PyAnnotateVariableTypeIntentionTest.java
@@ -191,6 +191,14 @@ public class PyAnnotateVariableTypeIntentionTest extends PyIntentionTestCase {
     doNegativeTest();
   }
 
+  public void testAnnotationCaretAtReferenceEnd() {
+    doAnnotationTest();
+  }
+
+  public void testAnnotationCaretAtDefinitionNameEnd() {
+    doAnnotationTest();
+  }
+
   private void doAnnotationTest() {
     doTest(LanguageLevel.PYTHON36);
   }