dmertz
Level 15

Retirement tax questions

The only way that you could have avoided all of this being taxable to you would have been to execute a qualified disclaimer on a portion of the IRA and allow that portion to go to contingent beneficiaries, which may or may not produce a better tax result or may have ended up with a different split of the money among your brothers.  However, since you have received the distribution from the IRA, a disclaimer is no longer possible.