@skst wrote:
I am not convinced that it is not a bug when TT20 copies the wrong value to line 7--regardless of how that value came to be.
I also noticed that when you and I say "No, this IRA was not inherited," TT20 still asks when the person died. (Presumably because we entered "Distribution code 4" which is death.) If it's not inherited, who died?
Also, using your method prevents ticking the Inherited IRA box "from someone other than a spouse" (in my case). This seems like an indefensible omission in my return since it is, in fact, inherited.
Therefore, I think it's more accurate (and easier) to enter everything correctly and then go into the Form 1099-R and manually tick Box B1. (Again, it seems like another bug that TT20 does not give the user the opportunity to roll over an inherited IRA distribute, given the CARES Act.)
By the way, overriding a value in the 1099-R Summary does not prevent me from e-filing.
As I said the ONLY purpose of the "is it inherited" question is to PREVENT rolling it over, but that is allowed for 2020 only. So to get the rollover question you have to tell TurboTax to allow rollovers by saying that it was not inherited. That does not change the code 4 that means inherited, but it does allow the rollover which is the only say to get the word "ROLLOVER" on the 1040 line 4 that is required by the IRS or the will disallow it and send you a bill for the box 1 amount or tax.
The code 4 is what prompts the question of the persons age when they died.
They probably should have removed the inherited question for 2020 and put it back next year but they did not. But the workaround is simple, just answer NO.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
