Yes, that distribution should be taxable. He took the distribution, so that will be taxable; even though the 1099R came in her name.
Yes, she did inherit the balance of the IRA; but she didn't inherit that particular distribution.
In answering the questions about the 1099R (and I'm assuming the 1099R is ONLY for the distribution, not moving the balance of the IRA into an inherited IRA)....for the question about where the funds went....(for the distribution only) say it went somewhere else....it didn't go into another IRA (at least based on what you're stating).
That should move the distribution from non-taxable to taxable.
For the balance of the IRA; was there a 1099R for moving the balance from his IRA to her IRA? If so, that would be the inherited IRA....AND that it went into another IRA.
**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**
