Myself and my siblings inherited an IRA from a deceased aunt in 2023. She was already taking RMD.
The broker set up each of our inherited IRA's. Edward Jones (EJ)is the original broker.
-A. One of us took a full distribution
-B. One transferred to another broker and took a full distribution
-C. One just transferred to a another broker
I thought :
A. should get a 1099-R from EJ with reportable death benefits paid
B. should get a 2 1099-R/'s from EJ plus a 5498 from new broker and another 1099-R from new broker as they then distributed fund. EJ 1099-R for the Inherited IRA and another 1099-R for the transfer to new broker.
C. Should get a 1099-R from EJ and a 5498 from new broker. EJ 1099-R for the inherited IRA and another 1099-R for the transfer to the new broker.
B&C got 5498's from new brokers and A got a 1099-R from EJ for their payout, B got a 1099-R only from their new broker. C got no 1099-R's at all . I think Edward Jones is wrong not sending 1099-R's to B &C.
Am I correct that B & C should get 2 1099-R's from EJ, 1 under new laws on inherited IRA and another for their transfer of their accounts to new brokers? or minimally a 5498 should have been created by EJ for the new inherited IRA?
Or since a broker to broker transfer a 2nd 1099R isn't needed as not taxable?
Thanks. If an opinion is given, just let me know opinion. If tax law supportable, please let me know that too.
APPRECIATE ALL OF YOUR RESPONSES, opinions and Facts.
Edward Jones broker claim " No distributions from the account took place while here so no form was generated."
Instructions from IRS: https://www.irs.gov/instructions/i1099r
**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.
