I will plan on submitting a 2024 standard 1040 return under my deceased brother's SS#, signing as PR just as I did for his 2023 return. I should theoretically receive the 1099-R corresponding to his early January 2024 (predeath) $4400 IRA distribution. I did a dry run through Turbotax, mocking up a 1099. As this $4400 was his only income and the Single Filer Standard Deduction is $14,600, it appears there will be no tax due.
The Fidelity IRA was a very recent rollover from my brother's company plan. As such, he had not yet provided any beneficiaries. In this light, your description of the IRA-BDA being established for the benefit of the estate appears to match the circumstances. I will be discussing with the Fidelity specialist to confirm we are all on the same page. However, Fidelity appears obligated to inform that the customer is responsible for tax implications. Nevertheless, I'm certain Fidelity will confirm the absence of any beneficiaries.
All this said, it appears I have the freedom (and obligation) to withdraw IRA-BDA funds to pay remaining Estate/Probate expenses. I will submit the 1041 using the EIN the IRS has provided at the time the IRA-BDA was created. Hereto, it seems I should expect to receive a 1099-R for the estate distributions utilized for estate expenses and the closing of the probate.
The thought has now occurred to me that these Estate BDA withdrawals will be occurring in 1st Q, 2025 and as such, inducing the obligation for a 2025 return. (?) I'd presume a 1099-R documenting these 2025 withdrawals won't be created until late January 2026. I was hoping to extricate myself from all aspects at the time the probate is closed (hopefully) this Spring. Wishful thinking?
Very grateful for the assistance.
