dmertz
Level 15

Retirement tax questions

If the Form 1099-R reports amounts an amount paid you you as spouse beneficiary only part of which was rolled over, yes, TurboTax cannot handle the reporting without splitting the Form 1099-R into two, one reporting the portion not rolled over (the RMD) and the other reporting the portion rolled over.

 

These transactions would have been better handled by either taking a distribution of the RMD and doing a nonreportable trustee-to-trustee transfer of the remainder of the inherited IRA to your own account or by doing a trustee-to-trustee transfer of the entire inherited IRA to your own account and then taking the RMD.  Nonreportable trustee-to-trustee transfers also avoid running afoul of the one-rollover-per-12-months limitation.

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