dmertz
Level 15

Retirement tax questions

Unless the IRA custodian simply made a bookkeeping error that they can correct, the code 1 indicates that the IRA account from which this distribution was received is not an inherited IRA.  A distribution from an inherited IRA would have code 4.

If the money from your uncle's IRA is was truly deposited into an IRA in your own name, not an inherited IRA, the amount distributed from your uncle's IRA was taxable in the year distributed and the money deposited into the IRA in your own name was an excess contribution beyond the amount that you were eligible to deposit as a new, regular contribution to your own IRA, reportable on the tax return for the year in which the deposit was made.

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