This can (and will) get complex. The root cause of this is not a tax issue per-se. You need to check with the issuer of the 1099-R for the beneficiary designee s. More than likely, you were designated as the primary recipient at 100%, with your bothers as secondary recipients in case you were not alive at the time of your father's passing. If so, then the 1099-R is correct and you owe tax on 100% of the proceeds, regardless of what you do with those proceeds.
