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Retirement tax questions
Follow the instructions below and If you still have the question about the RMD you should say 'yes'.
Beneficiaries of an IRA, and most plans, have the option of taking a lump-sum distribution of the inherited account at any time. Beneficiaries must include any taxable distributions they receive in their gross income.
When you enter the 1099-R in your return, you will reach the page 'Do any of these situations apply to you?' be sure to check the box beside 'I inherited this IRA'. This will eliminate any penalty.
If your father-in-law did not have any previous 'nondeductible' contributions (not common) then the full distribution is taxable.
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‎February 19, 2025
6:55 AM