My Spouse's father passed in 2019. His estate was under $1M. Her father had an IRA in trust for her. Valued under $25,000. She cashed it in. She received a 1099-R; Box 7 was code 4 = death. But next to it an "x" was in the box labeled IRA/SEP/Simple.
My parents passed several years ago and our NY attorney referred to Fed inheritance laws stating if estate is under $1M any inheritance is not taxable.
