dmertz
Level 15

Get your taxes done using TurboTax

Expanding on what DaveF1006 said, because a IRA inherited by a non-spouse beneficiary can only be moved by nonreportable trustee-to-trustee transfer, TurboTax prohibits you from reporting a distribution from an inherited IRA as having been rolled over.

 

If the funds were paid to you personally and you then deposited them into another inherited IRA, that deposit is a failed rollover and instead constitutes an excess ordinary contribution that is subject to penalty unless corrected by a return of contribution by the due date of your tax return, including extensions.

 

If the funds were instead made payable directly to the new inherited IRA (or at least to the new IRA custodian for your benefit and deposited directly into the new inherited IRA), no Form 1099-R should have been issued.  In this case you would need to obtain a corrected Form 1099-R from the original IRA custodian indicating that $0 was distributed.  There should also be no Form 5498 from the new inherited IRA indicating receipt of a rollover.