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Retirement tax questions
You need to make it clear to the program that this was an inheritance since the form 1099-R does not make it clear. The code T is used for a Roth when it is unknown if the 5 year holding period was met but with several factors, including the participant died.
Income to the decedent would be income to you. There is no penalty for death, a code 4 for form 5329.
The program holds most information, however, when there is a particularly important question, it removes the information when you return to the screen. This is one of those cases. The date is critical so the program is forcing you to enter it each time you visit that screen.
See Form 5329 instructions.
See Retirement Topics - Beneficiary | Internal Revenue Service which states: Inherited Roth IRAs
Generally, inherited Roth IRA accounts are subject to the same RMD requirements as inherited traditional IRA accounts. Withdrawals of contributions from an inherited Roth are tax free. Most withdrawals of earnings from an inherited Roth IRA account are also tax-free. However, withdrawals of earnings may be subject to income tax if the Roth account is less than 5-years old at the time of the withdrawal.
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