DaveF1006
Expert Alumni

Retirement tax questions

 Yes, it can be confusing on how to enter this information in your return. Hopefully this will clear up some of the confusion.

 

  1. Inherited IRA: Since the IRA was inherited from your spouse and rolled into a Beneficiary IRA, you should answer "Yes" to the question about inheriting the IRA. This ensures TurboTax understands the context of the account. 
  2. RMD and Account Rollovers: The confusion seems to stem from the distinction between the RMD (Required Minimum Distribution) and the rest of the account. When TurboTax asks if you "put the inherited funds into your own IRA account," it is referring to the entire account, not just the RMD. Since you rolled the inherited IRA into a new IRA in your name, you should answer "Yes" to this question.
  3. Once you have transferred the money into your own IRA account, you took out the RMD and placed it into a cash account. You do not need to supply any additional reporting for this.  The only thing IRS and "Turbo Tax" is interested in is if you paid the required distribution for this year not how you deposited the RMD distribution once the funds were rolled into your IRA account. 

 

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