- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I have inherited a Roth IRA and received 1099 R for the RMD in 2018. Turbo Tax is not asking me about the source (did you inherit the IRA?). Should I be concerned?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
Did you receive any other Forms 1099-R related to this Roth IRA?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
In what year did she pass?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
If the account she had was indeed her own Roth IRA, there was no RMD requirement for 2018.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
A code 8J would indicate that the box 1 amount was returned as an excess contribution (a RMD converted would be an excess contribution.)
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
Ah, that's how an excess contribution to the Roth IRA occurred and EJ handled the correction properly. If the RMD for that traditional IRA was not first satisfied by a distribution from a different traditional IRA of your mother's, the first amount distributed from the traditional IRA that was converted to Roth was the RMD for that traditional IRA that was not eligible for conversion to Roth. Because it was not eligible for conversion to Roth, it became an excess contribution in your mother's Roth IRA. That excess remained in the IRA when it was transferred to an inherited Roth IRA for your benefit, so it's proper that it was distributed to you as a return of excess contribution.
When preparing your own tax return, simply enter the Form 1099-R as received. There is no need for TurboTax to know if the distribution was from an inherited Roth IRA or not.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content