dcox4321
New Member

Do I have to count my RMD from my inherited ira from parent on savers credit form 8880

 
LisaBr
New Member

Retirement tax questions

Yes, you will need to include the RMD for your parent that you received.

The IRS specifically requires distributions from Non-Spousal Inherited IRA Required Minimum Distributions be reported.

See the instructions page on the following link under Line 4:

https://www.irs.gov/pub/irs-pdf/f8880.pdf


dcox4321
New Member

Retirement tax questions

Yes I read that but that it is under do not include section
LisaBr
New Member

Retirement tax questions

Line 4 entries, "Enter the total amount of distributions you, and your spouse if filing jointly, received after 2014 and before the due date of your 2017 return (including extensions) from any of the following types of plans...Distributions from an inherited IRA by a non-spousal beneficiary."  This is the section I was referencing.
dcox4321
New Member

Retirement tax questions

Do not include any: • Distributions not taxable as the result of a rollover or a trustee-totrustee transfer. • Distributions that are taxable as the result of an in-plan rollover to your designated Roth account. • Distributions from your eligible retirement plan (other than a Roth IRA) rolled over or converted to your Roth IRA. • Loans from a qualified employer plan treated as a distribution. • Distributions of excess contributions or deferrals (and income allocable to such contributions or deferrals). • Distributions of contributions made to an IRA during a tax year and returned (with any income allocable to such contributions) on or before the due date (including extensions) for that tax year. • Distributions of dividends paid on stock held by an employee stock ownership plan under section 404(k). • Distributions from a military retirement plan (other than the federal Thrift Savings Plan). • Distributions from an inherited IRA by a nonspousal beneficiary  This section I was looking at it is confusing

Retirement tax questions

I agree - that is under the "do not include" section.  TurboTax does not add an inherited (1099-R code 4) distribution  form a non-spouse to line 4 on the 8889 form.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
LisaBr
New Member

Retirement tax questions

As the 1099-R is entered, there are a series of questions in TurboTax related to the RMD.  TurboTax bases the calculations made depending on the answers to the questions.
dcox4321
New Member

Retirement tax questions

Yes I  added it under income but it also ask if you received payments on savers credit section Do put rmd there also

Retirement tax questions

The interview for a 1099-R with a code 4 will ask if it is inherited, then ask if it was inherited from a spouse or non spouse.  It will ask when the deceased died and when born.  That will determine if a RMD is required or not.   

You do not enter anything in the 8880 interview for this.

Enter a 1099-R  here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu  (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type:  Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE:  When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases.  You can always return as shown above.]
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
dcox4321
New Member

Retirement tax questions

Thanks for all the help

Retirement tax questions

so what answer is correct? the one marked best or the one that comes later. The later one seems more correct according to the instructions on irs form 8880. turbotax free edition gives no explanation as to what counts as a ira distribution.  

dmertz
Level 15

Retirement tax questions

Distributions to a non-spouse beneficiary, reported on a code 4 Form 1099-R, are not to be included.  From the instructions for Form 8880 line 4:

 

Line 4

Enter the total amount of distributions you, and your spouse if filing jointly, received after 2016 and before the due date of your 2019 return (including extensions) from any of the following types of plans.
• Traditional or Roth IRAs (including myRAs), or ABLE accounts.
• 401(k), 403(b), governmental 457(b), 501(c)(18)(D), SEP, or SIMPLE plans.
• Qualified retirement plans, as defined in section 4974(c) (including the federal Thrift Savings Plan).
Don’t include any of the following.
• Distributions not taxable as the result of a rollover or a trustee-to-trustee transfer.
• Distributions that are taxable as the result of an in-plan rollover to your designated Roth account.
• Distributions from your eligible retirement plan (other than a Roth IRA) rolled over or converted to your Roth IRA.
• Loans from a qualified employer plan treated as a distribution.
• Distributions of excess contributions or deferrals (and income allocable to such contributions or deferrals).
• Distributions of contributions made to an IRA during a tax year and returned (with any income allocable to such contributions) on or before the due date (including extensions) for that tax year.
• Distributions of dividends paid on stock held by an employee stock ownership plan under section 404(k).
• Distributions from a military retirement plan (other than the federal Thrift Savings Plan).
• Distributions from an inherited IRA by a nonspousal beneficiary.

Retirement tax questions

Answer is wrong. It looks like answer that is  marked as best is incorrect. You should not include the distribution from a non spouse inherited ira. As indicated in this threads later answer

 

I'm having this same issue and have not submitted my taxe return yet. I'm using federal free turbotax edition. It only asks if you have received any distributions. It does not tell you what types not to include. You have to read irs 8880.

 

I found this answer here https://ttlc.intuit.com/community/retirement/discussion/will-inherited-ira-rma-s-effect-retirement-s...

 

I'm going to file later this week I'm not going to claim the distribution i received when my sister and I inherited and split our deceased fathers ira.

 

I do hope I'm right please chime in if I'm incorrect

 

dmertz
Level 15

Retirement tax questions

john7556, you are correct, the original answer here is wrong.  Distributions paid to non-spouse beneficiaries are not to be included anywhere on Form 8880.

Retirement tax questions

Thanks. I really wish turbo tax would fix this. it looks like the poster above had the same issue with 2018. Not sure if this is a issue with just the free edition. But it really should include this info in either a actual question or a sidebar pulldown info menu.

Because technically yes in the last 3 years I did receive a distribution. That is all turbo tax asks for. with no side bar help. Again wondering if this is because it is the free edition