A Form 1099-R for a distribution from an inherited traditional IRA will have the gross amount in boxes 1 and 2a, box 2b Taxable amount determined marked, code 4 in box 7 and the IRA/SEP/SIMPLE box marked. When asked, you must answer Yes when presented with the poorly worded question asking if you inherited the IRA from [Financial Institution].
If the IRA/SEP/SIMPLE box is not marked, the distribution is from some kind of account other than a traditional IRA.
