dmertz
Level 15

Retirement tax questions

You are not permitted to roll money over from an IRA inherited from a non-spouse, so TurboTax will not ask the question when entering a code 4 Form 1099-R received by a non-spouse beneficiary.

 

As a non-spouse beneficiary you are only permitted to move the IRA inherited to another inherited IRA for your benefit by nonreportable trustee-to-trustee transfer.  If the account was actually properly moved in this manner, no Form 1099-R should have been issued and you need to contact the payer to correct the Form 1099-R to show $0 distributed.  However, if the distribution was paid to you, no rollover is permitted and the deposit of these funds into your own IRA represents a new regular contribution by you unrelated to the distribution to the inherited IRA and is an excess contribution to the extent that it exceeds the amount that you are eligible to contribute for the year as a new regular contribution.