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Inherited IRA was moved to a trust and then to the beneficiaries. 1099-R shows Estate as recipient of IRA. How do I report the distribution to the beneficiaries?
Distribution of IRA assets to Trust and then distributions to beneficiaries both occurred in 2017. Total distribution to beneficiaries in 2017 included bulk of Trust assets (inheritance) and all of IRA assets.
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Retirement tax questions
Was the beneficiary of the IRA actually the estate of the deceased and not a trust? Unless the decedent's estate was the beneficiary of the IRA, perhaps by default, it seems that there should have been no distribution made from the IRA to the estate.
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Retirement tax questions
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Retirement tax questions
I'm not sure the K-1 is for the distribution of the entire IRA balance to the beneficiaries. Wouldn't you report the distribution as an other deduction thus zeroing out the trust income? The 1099-R's would be prepared by the trust.
The 1099-R, which reports the inherited IRA distributions to the IRS, will be generated under the trust name and trust tax identification number.
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Retirement tax questions
In this old original question, the fact that a Form 1099-R was issued to the trust suggests that a distribution was paid to the trust from the inherited IRA and has nothing to do with assigning the inherited IRA out of the trust to the trust beneficiaries. Assigning an inherited IRA out of the trust to trust beneficiaries is not a distribution from the IRA and is not reportable on either a Form 1099-R or on any part of an estate income tax return.