Good advice, DMertz. Cricketluu, just remember that this is entirely "off tax return". But what you can do is back-out the amount you gave to a sibling from your 1099-R. Notate your federal (and state) refund or amount due. Then put it back. Present the change as an amount to your siblings as what they owe you to cover the tax burden. Assuming you discussed "distributing" with your brothers, you can tell them now that you will need to do it this way instead. They should understand.
