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Retirement tax questions
Whose name us the 1099-R in and what is the code in box 7?
An IRA paid after the owners death should be in the name of the beneficiary with a code 4 in box 7. If the beneficiary was the estate and not a person, then the estate would distribute the proceeds according to the will and the estate would pay the tax. If in the name of a person as a beneficiary, then that benificuary is responsible for the tax and it cannot be assigned to someone else. If more than one beneficiary then the IRA custodian would have sent separate 1099-R's to each benificuary with their share.
What the beneficiary does with the money is up to them if they want to split it or not, which would be a non-reportable gift and not go on the tax return.
An IRA paid after the owners death should be in the name of the beneficiary with a code 4 in box 7. If the beneficiary was the estate and not a person, then the estate would distribute the proceeds according to the will and the estate would pay the tax. If in the name of a person as a beneficiary, then that benificuary is responsible for the tax and it cannot be assigned to someone else. If more than one beneficiary then the IRA custodian would have sent separate 1099-R's to each benificuary with their share.
What the beneficiary does with the money is up to them if they want to split it or not, which would be a non-reportable gift and not go on the tax return.
**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.**
May 31, 2019
5:50 PM