dmertz
Level 15

Retirement tax questions

An inherited IRA is only allowed to be moved to another inherited IRA by nonreportable trustee-to-trustee transfer where no Form 1099-R is to be issued.  If the IRA was properly moved by trustee-to-trustee transfer where the funds were never paid to you personally, you must contact the original IRA custodian and obtain a corrected Form 1099-R showing that no distribution actually occurred.  Assuming that no taxes were withheld, the previously reported dollar amounts must be replaced with zeros on the corrected form.

 

If the funds actually were paid to you personally, TurboTax does not allow this to be reported as having been rolled over because a distribution from an inherited IRA is not permitted to be rolled over to another inherited IRA.  (A spouse beneficiary is permitted to roll a distribution from their deceased spouse's IRA over to their own IRA provided that no part of an RMD is rolled over.)