diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/source/PsiJavaCodeReferenceElementImpl.java b/java/java-psi-impl/src/com/intellij/psi/impl/source/PsiJavaCodeReferenceElementImpl.java
index 3a21b097a3d9..d3ac9a9394fa 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/source/PsiJavaCodeReferenceElementImpl.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/source/PsiJavaCodeReferenceElementImpl.java
@@ -208,9 +208,16 @@ public class PsiJavaCodeReferenceElementImpl extends CompositePsiElement impleme
       assert dot != null : this;
       deleteChildRange(child.getPsi(), dot.getPsi());
 
-      List<PsiAnnotation> annotations = PsiTreeUtil.getChildrenOfTypeAsList(this, PsiAnnotation.class);
-      setAnnotations(annotations);
-
+      PsiModifierList modifierList = PsiImplUtil.findNeighbourModifierList(this);
+      if (modifierList != null) {
+        ASTNode ref = findChildByRole(ChildRole.REFERENCE_NAME);
+        assert ref != null : this;
+        PsiElement lastChild = ref.getPsi().getPrevSibling();
+        if (lastChild != null) {
+          modifierList.addRange(getFirstChild(), lastChild);
+          deleteChildRange(getFirstChild(), lastChild);
+        }
+      }
       return;
     }
 
@@ -614,31 +621,6 @@ public class PsiJavaCodeReferenceElementImpl extends CompositePsiElement impleme
     return annotations;
   }
 
-  private void setAnnotations(List<PsiAnnotation> annotations) {
-    if (annotations.isEmpty()) return;
-
-    PsiElement newParent = this;
-    PsiElement anchor = SourceTreeToPsiMap.treeElementToPsi(findChildByType(JavaTokenType.DOT));
-    if (anchor == null) {
-      PsiModifierList modifierList = PsiImplUtil.findNeighbourModifierList(this);
-      if (modifierList != null) {
-        newParent = modifierList;
-      }
-    }
-
-    for (PsiAnnotation annotation : annotations) {
-      if (annotation.getParent() != newParent) {
-        if (anchor != null) {
-          newParent.addAfter(annotation, anchor);
-        }
-        else {
-          newParent.add(annotation);
-        }
-        annotation.delete();
-      }
-    }
-  }
-
   private boolean isFullyQualified(@NotNull PsiFile containingFile) {
     int kind = getKind(containingFile);
     switch (kind) {
diff --git a/java/java-tests/testData/psi/shortenClassRefs/WhiteSpaceForMovedTypeAnnotations.java b/java/java-tests/testData/psi/shortenClassRefs/WhiteSpaceForMovedTypeAnnotations.java
new file mode 100644
index 000000000000..18a1cded67ea
--- /dev/null
+++ b/java/java-tests/testData/psi/shortenClassRefs/WhiteSpaceForMovedTypeAnnotations.java
@@ -0,0 +1,11 @@
+import java.lang.annotation.*;
+
+@Target({ElementType.TYPE_USE})
+@interface TA { }
+
+class Test {
+  private void bar(java.util.@TA List<String> na<caret>me) {
+  }
+
+
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/psi/shortenClassRefs/WhiteSpaceForMovedTypeAnnotations_after.java b/java/java-tests/testData/psi/shortenClassRefs/WhiteSpaceForMovedTypeAnnotations_after.java
new file mode 100644
index 000000000000..0b00a329c4ea
--- /dev/null
+++ b/java/java-tests/testData/psi/shortenClassRefs/WhiteSpaceForMovedTypeAnnotations_after.java
@@ -0,0 +1,12 @@
+import java.lang.annotation.*;
+import java.util.List;
+
+@Target({ElementType.TYPE_USE})
+@interface TA { }
+
+class Test {
+  private void bar(@TA List<String> name) {
+  }
+
+
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/psi/impl/source/tree/java/ShortenClassReferencesTest.java b/java/java-tests/testSrc/com/intellij/psi/impl/source/tree/java/ShortenClassReferencesTest.java
index c4887c452d23..df9b57d43c2e 100644
--- a/java/java-tests/testSrc/com/intellij/psi/impl/source/tree/java/ShortenClassReferencesTest.java
+++ b/java/java-tests/testSrc/com/intellij/psi/impl/source/tree/java/ShortenClassReferencesTest.java
@@ -81,6 +81,20 @@ public class ShortenClassReferencesTest extends LightCodeInsightFixtureTestCase
                           "class Outer1 {class Inner {} {boolean b = new Inner() instanceof Inner;}}");
   }
 
+  public void testWhiteSpaceForMovedTypeAnnotations() throws Exception {
+    myFixture.configureByFile(getTestName(false) + ".java");
+    PsiElement elementAtCaret = myFixture.getElementAtCaret();
+    assertTrue(elementAtCaret instanceof PsiParameter);
+    WriteCommandAction.runWriteCommandAction(getProject(),
+                                             () -> {
+                                               PsiTypeElement typeElement = (PsiTypeElement)JavaCodeStyleManager.getInstance(getProject()).shortenClassReferences(((PsiParameter)elementAtCaret).getTypeElement());
+                                               assertTrue(typeElement != null && typeElement.isValid());
+                                               assertEquals("List<String>", typeElement.getText());
+                                             });
+
+    myFixture.checkResultByFile(getTestName(false) + "_after.java");
+  }
+
   private void doTest() {
     myFixture.configureByFile(getTestName(false) + ".java");
     doShortenRefs();