I inherited an account from my mother. It was not designated an IRA. I elected to take distribution in 3 equal(ish) withdrawals. Last year, the 1st withdrawal the amount withdrawn was 23K+ and the taxable was 14k+. My understanding is that the most taxable funds are distributed first. This year for the exact same $ withdrawal, the 1099-R has the entire amount taxable. This can't be right. In fact before withdrawing last year, the advisor for the firm told me that less than 10k would be taxable on the 2nd withdrawal. I have already argued that the 1099 was coded incorrectly as a D1 and should be a D4. I have received the corrected form showing the D4, but still the same taxable amount. What do I do? I have talked to them mult times asking for a review of it.
