1099-R not inherited money

[amessusa]

My wife's 1099-R was claimed as inherited money not as just a regular 1099-R. The full amount was placed on line 4b.

[ColeenD3]

What is your question? Inherited money is not reported on Form 1099-R. A death benefit from a pension would be.

When a participant in a retirement plan dies, benefits the participant would have been entitled to are usually paid to the participant’s designated beneficiary in a form provided by the terms of the plan (lump-sum distribution or an annuity).

If you entered the 1099-R exactly as it appears, the amount could be taxable.

[amessusa]

My wife's 1099-R is from her Merrill-Lynch retirement account. I have always reported it as a 1099-R account. BY MISTAKE I answered TURBO TAX questions as if she had inherited this specific 1099-R. It was my error calling this as inherited money. A foolish senior moment. Thank you for your prompt answer. The value is for a measly $3341. Should I just pay for the modest amount of tax, instead of filling an amendment?

[macuser_22]

It might not make any difference.

What code in in box 7?  Is the IRA/SEP/SIMPLE box checked?

[amessusa]

Thanks for reply. Box 7 has 7 IRA/SEP/SIMPLE is maked X.

[macuser_22]

Then that is a distribution from a Traditional IRA and would all be taxable unless there was an after-tax basis in the IRA.  It would only be inherited if there was a code 4 in box 7.

[amessusa]

Also, since she took out $3341, she had $331(box 4) taken out. Thanks again.

[macuser_22 · Accepted solution]

The box 4 is estimated tax paid and will be added to all other W-2 and 199 withholding on the 1040 form line 17 to be applied to the tax due or added to refund.