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Retirement tax questions
Answer Yes. For unknown reasons, TurboTax does not simply infer from code 4 in box 7 of the Form 1099-R that the distribution is from an inherited IRA and requires you to inform TurboTax that it is from an inherited IRA. TurboTax needs to know that it's from an inherited IRA because the tax treatment of distributions from inherited IRAs must be determined entirely independently from anything having to do with your own IRAs. (TurboTax does need to ask the question for a distribution from a Roth IRA because the code in box 7 does not identify if the distribution is from an inherited Roth IRA or from your own Roth IRA.)
March 15, 2025
2:29 PM