MSH SR
New Member

Retirement tax questions

My wife and older sister had a younger sister who died without other heirs in 2019.  Her death benefit from her retirement plan was sent to my wife together with the 1099-R.  My wife then tranferred 50% of the benefit to her older sister, who reported it as income together with 50% of the income tax witheld.  How do we report that without having the entire distribution taxed to my wife?