For the box 7 code 4D - this worked for me today - I chose the 403b and it did ask about my inherited non-qualified annuity.. An inherited nonqualified annuity does not have RMD
Follow these steps:
Your 1099R should have box 7 with a code D for nonqualified annuity and code 4 for inherited. Let's go through the steps:
- Open your return to the federal income
- Select the 1099-R and edit
- taxable amount -if box 2a has no amount or needs to be determined, the program will ask about cost basis. If 2a has a number and you select to use it, the program will not ask about the basis.
- continue to Enter the form
- No Public Safety Officer
- Age of person - before of after Jan 1, 1952.
- select no or yes
- select 403b plan
- RMD, enter zero
- continue
- @TerriLa
The program adds a penalty when you haven't taken the full RMD. The question is, did you take the full RMD?
- If yes, return to the screen where you entered the form.
- RMD = distribution - You can mark the RMD is the same amount and all of it went to RMD, there is no penalty.
- If the RMD is less than what you took, enter the smaller RMD, enter that NOT all of it went to RMD but $XX = RMD did.
- For example: $1000 distribution with a $600 RMD. Enter not all of it but $600 toward RMD. Program is happy. You can't say all of it and have a lower RMD. Review your answers.
- If no, you did not take the full RMD, you would have a penalty. @bruce80
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