From IRS Publication 590-B, distributions received from this inherited IRA, from your deceased brother's retirement account, may be considered taxable income to you. Since this IRA is a ROTH IRA, a certain portion of the distribution will be considered non-taxable income since the ROTH IRA contributions were not deductible by your brother. However, any interest, dividends, and other income earned on these contributions will be considered taxable income. In the beginning of 2023, you will receive Form 1099-B from the bank/investment firm that paid the distribution from your brother's retirement account. This form will report the total distribution and also provide the taxable portion of the total distribution so that you can report correctly on your tax return.
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