Education

1. 1099-R

• Code G indicates a rollover. 
• See Table 1. Guide to Distribution Codes. 
• If your form shows you don't have a taxable amount in box 2, the big hurdle is jumped.
• Many institutions would prefer to send a 1099-R rather than be fined for not sending one. See Instructions for 1099-R.
• When you enter the 1099-R, you can answer the questions so that it isn't taxable.

2. The 5498 is informational and should be kept with your financial records. It may be online rather than mailed to you.

3. An inherited IRA may have an RMD and the IRS knows. As long as your tax forms aren't charging you a penalty for not taking the full amount, you are in good shape. The IRS will look at the account value and your distribution and realize you took the RMD. The IRS looks at all account values. You can take your RMD for one account and cover all of your accounts or take some from several or however you want to do it. 

There is a difference between answering questions in the program versus the actual forms the IRS gets. The IRS doesn't get the worksheets or program things. The IRS gets the tax forms. If yours are correct, great!

I want to urge you to create a financial notebook that is kept separate from your tax return. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s, your  carryover information, and proof of your basis in your various investments. You must keep tax records  from the time you purchase until sold/ loss used plus 3 years. It is very easy to lose track of disallowed losses, carryforwards,  and basis. This can be a digital or paper notebook.