I inherited a traditional IRA from a parent who passed in 2010. Back then when I was named beneficiary on the IRA, the assets would be distributed over my life expectancy. I've taken the required minimum distribution each year governed by the life expectancy IRS rules ever since 2010. I've had 10% federal withholding on each distribution I've ever taken. There was no basis in the decedent's IRA when the IRA was set up with me as beneficiary
This is the first year while filing my 2023 return that I'm really confused. The software is not calculating any federal tax owed on the distributions I've taken in 2023. The software just calculates 100% of the amount of Federal withholding on all distributions in 2023 being refunded which is the entire amount in box 4 of the 1099-R. I haven't filed yet. Something is wrong.
I can't imagine this having anything at all to do with new beneficiaries of retirement accounts in 2020 subject to the 10 year rule. Then in 2022 the IRS proposed additional changes on RMD's for 2020 beneficiaries. Then again in 2023 on missed RMD's and where final guidance still hasn't passed.
I'm so confused on what's going on. The only thing I can think it might be is the software. This is NOT a Roth IRA. And no, I did not make any MISTAKES. I triple checked
