My brother passed away with with a 401K that had my mother and father as beneficiaries. Prior to the transfer being made, my father passed away. The beneficiaries became my father's estate and my mother. Accounts were set up for my father's estate and my mother and the plan administrator transferred half of the 401K to each of them as inherited 401Ks. The plans remained intact with no distributions made. Should there have been a 1099R generated for this transfer? I am the executor of both estates and I am being told I need to generate a K1 from my brother's estate for the distribution - is this true ? It is not income yet. I don't see what to enter on the K-1 form. No 1099R was received.
I realize when my father transfers his half of the 401K to his heir (my mother) he will have to cash the entire 401K out and transfer cash, and then his estate will receive 1099R with code 4. At that time, I will generate a K1 from my father's estate to my mother.
Canan someone help me so I do this correctly? Thank You
