@TurboLover2 wrote:
Okay I found a way to make the 1040 come out correct.
The 1099-R reports box 7 as Code 4 (Death).
I changed the code to code G "Direct Rollover and rollover contribution"
This caused line 4a on the 1040 to include the full amount of the partial RMD distributed and line 4b to be zero with the word "ROLLOVER" noted.
I am not sure if code G is the proper code they should have used on the 1099-R and they made a mistake, but I do know that the 1040 is now properly completed and that's what counts.
I suspect that the code 4 was a mistake because the person who died died in 2019, not 2020, and I suspect that code is only for the year of death.
Anyway, wanted to share my solution in case it can help someone.
A code 4 is proper for as long as you receive distributions from the inherited IRA.
A code G implies that this was a retirement plan of YOURS, that was transferred by the plan custodian, without you ever seeing the money, to another plan. That code can NEVER apply to an inherited IRA.
Delete it and enter as I said above and say that it was NOT inherited to get the rollover question.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
